Deal Analysis Help or Ideas on a Multifamily Building

[Donald F.]

Can you guys help me determine if this is a decent deal? I'm looking to take advantage of bonus depreciation and thought this could be a good deal. I also like it because the owner is willing to do seller financing and I don't know another way to go about getting financing since I do not have two years of income (albeit this year I have $250k thus far in commissions).

The owner is retiring and has no basis/seems like it may require some work, though I guess it's humming along for now. I plan on driving down there this weekend to take a look at it. He is looking for $585k, 30% down and 6% interest only for a 7 unit building (1 bedrooms) totaling appx 5200 SF on the University of South Carolina campus.

The units get anywhere from $800-$900 and would yield appx $5500/month in rental income.

The tax bill for this past year was appx $7400.

Any thoughts on whether or not that financing is crazy /ok, alternative financing routes, other ideas to accomplish my goals would be helpful. Let me know if any questions. Thank you.