owner financed deal- need some advice

[Jesse Andrews]

Hey there-

OK, so I am trying to bridge the gap into CRE. I am a relatively new investor in Rhode Island, and have stumbled upon a possible owner financed deal (owner holding 20% second)

The property was listed on loopnet for months, and the seller removed it. I pulled his prop. records, found his name and got in touch. After a dinner mtg, we tentatively came up with a price. here goes:

16 units, all 1 bed. (this is potentially scary for me) although there has been solid rental history.
1 building
recent cap improvements: new roof, new paved drive, 15 of 16 units remodeled.
annual rents + laundry = 118,122
vac 5%
Adj. income = 112,216

expenses= $35,207

The owner is willing to hold 200k, and i'd finance the rest.
Selling price would be $700k

property based on a 10 cap is worth $725k

I can improve rents slightly, and lower expenses slightly.

Does this sound like a solid plan, or am I blinded by the owner financed deal?

I'd really appreciate any insight.

Thanks