Thinking of buying an apartment and renting it...

[Robert Campbell]

The apartment is listed for $27,000.  It DOES have new appliances and HVAC, but is over $5,000 more than the other places that are identical in the same complex.  I have one rental property, but it was a house I bought when I was young, so I've never made an offer on a property solely for a rental.  

So the numbers shake out like this:

RENT - $750

HOA - $329

Taxes/Insurance - $60

Vacancy @ 10% - $75

Prop Mgt fee @ 12% - $90

Total - $554

Cashflow - $196

So I've worked up three options to offer the seller.  I've never done this before so I'm doing my best to come up with something fair.  

$24,000 offer - Seller financing - $300/month for 96 months which is at 5% interest

$21,000 offer - $10,000 down - Seller financing - $125/month for 108 months which is at 5% interest

$18,000 cash offer

Am I way off here???