Analysing 2 x 10 Units Which One or Both?

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Hi BP!

I am analyzing two properties in the same town as I am interested in purchasing one or both for my first REI. All of the data has been provided by the owners.

Here are the numbers for the two properties: Two Property Analysis

Location: Maine - College Town - 6 colleges - 6,000 students

Property: Both are 10 Unit buildings

Local Cap Rate: 10%

Financing: This is the area I am weakest, but I believe I have four options:

1. Save up for the ~$88k down payments ($44k each). This will take me 2 years, but I can be pre-qualified for $700k based on income and little debt. (the deals will be gone by then)

2. Find Private Money Lenders to raise the $88k down payment (and hold in account for 90+ days), give them a 7% ROI and a 20% carry on the cash flows for 5 years. Not sure this will work from what I have read on the forums.

3. Find Private Money Lenders for 100% of the purchase price ($240k each property)

4. Seller Financing similar to PML if I can negotiate this.

Your thoughts are greatly appreciated.

Thank you!

Jamie