Any Reason not to Buy?

[Ralph Love]

Hello all,

I've got an opportunity to use $125,000 other people's money (family/friends currently earning 2% on savings accounts they're not too worried about).  I've sold them on the idea of a condo purchase in a hot area West of Minneapolis.  Highly attractive area for tenants, great amenities nearby, easy commute downtown/uptown.  Condo building is surrounded by new development, class A apartments fetching $1,400+ for small square footage 1 bed 1 baths.  I think I would land at $1,200/month based on this unit/building, I've been watching other units in the building on Zillow/Apartments.com and they're asking more and listings are disappearing.  Building has sauna/pool/off street parking but just older less attractive building.

Deal Structure - they would buy 100% cash and sell to me on contract for deed $0.00 down 5% interest 30 amortization.  I'd put 30 days due diligence on it just to lease it out.  If I can't find a tenant by then, I'd cancel and walk away.  

After property tax/insurance/HOAs/10% repairs/other expense I should break even.  I've toured and it is rent ready so shouldn't have to do any repairs (maybe smoke detector batteries), appliances are brand new, mechanicals <5 years old.  Tenants will be paying gas/electric/cable/internet. If I don't have any repairs/others I should cash flow $100/month.  On top of this, I am licensed broker so should walk away with a $3,300 commission at closing.

Any reason not to buy?  Based on area I should be able to find a young professional to lease, ideally young couple of professionals.  So don't anticipate having to chase down rents every month on this one.

I think financing terms are pretty incredible but would aim to refinance if rates stay low in a couple years once I've paid down some debt and let the property appreciate a bit.  Really just to give my family/friends their money back more than anything.  If all goes well, I'm sure we could do the same deal again on a different property.

Any reason not to pull the trigger on this one?