Am I over thinking this?

[Patrick Terrebonne]

Although I have several single family homes, this is my first commercial venture and I will be purchasing a small strip mall. The owner is in teir 70s and will do owner financing rather than a straight sale.

Sale price 250k

10 percent down

Minimum 2000 per month but can pay more

5% interest

Remaining balance due in 5 years

Cashflow, after all expenses, 1800 a month

My gut says jump on it but my brain says, I will have negative cash flow.

My plan is to raise the rent on the 5 businesses, within the mall, at least once in the next 5 years. Put some additional funds into it and in 5 years time, refinance. Then get traditional financing and take the equity to pay off the remaining balance.

I like the idea of owner financing and not touching my revolving corporate credit line. I want to have floating credit to purchase more properties as they become available.

The apraisal and the numbers work for me, but being cashflow negative for 5 years is a little off putting. Am I just over thinking? Thanks for reading.