Newbie needs help/advice on (potential) first deal

[Darrin B.]

Greetings!! I first want to say thank you for such a great forum! I have only just discovered BP and know I have a WEALTH of great things to learn.

My story: I'm a business professional who will soon be unemployed. After almost 25 years, my job will soon be outsourced. My father in-law has been a very big real estate investor for many years and always had encouraged me to invest. I am only just considering getting into the market now after much reluctance.

My first potential deal: I'm looking at a 2 Building Deal with a total asking price of $679,998. The combined purchase would yield 12 units in total (w parking spaces). The buildings look to be in excellent shape (tile, hardwood and granite) and look to be well maintained as well.

Price vs expenses: Combined gross rents come to $7,385.00 monthly, $88,620.00 annually. All combined expenses come to $21,661.96 annually.

Although I don't have specific terms, the seller is willing to hold mortgage for 5 years...and with perhaps as little as 10%!

On top of that, there is one unit that is/was being renovated so the gross rents don't include the potential of another unit (about $900pm).

What are your thoughts on a realistic offer? Is there a realistic offer to be made here?

Thanks in advance.
D