Am I overthinking this deal?

[Kris Kempe]

Hey everyone, 

I need some help on if this deal makes sense or should I reconsider.

So I’ve been talking with a seller of a 7 unit multi family property about selling property subto, he agreed although for his trouble he wants $75,000 judt for letting us take over the loan. Upon that after a year he wants us to refinance and then take out his investment into the property and remove his already existing equity. I brought in an equity partner to cover the downpayment however, I’m still unsure if this deal is worth the cash flow or should I try and renegotiate terms with him. 

Thanks 

[Evan Polaski]

@Kris Kempe, at the end of the day, none of us can really help you decide if it is worth it.  Even if you share all the numbers and projections.  Each person here values their time, effort, and capital differently.  

It is the same reason some people will jump at the opportunity to buy properties that might net $100/mo/door, but I want several hundred/mo/door to be worth my time.

Things to think about:If you don't buy this deal, where else could you invest your time or money to get equal to, or better, returns?  How confident are you that you can actually refi the property in a year?  What is seller's recourse on you if you can't refi him out?  Do you hand the property back to him and you/your partner just lost $75k, plus any investments you made in the property?

Lastly, it sounds like this seller may not be that interested in selling.  As such, if the deal isn't making sense for you, then it is worth the effort to renegotiate, but may not get you anywhere.