Interesting 12-plex deal

[Kyle Pepple]

So I have a really interesting opportunity and I’m not sure if it would be smart to take it. There’s an apartment complex for sale about 30 minutes from my home. It’s going for 200,000, it’s 12 units that rent for 400 a month and it also comes with a house on the property. The owner is also willing to do an owner finance deal for 20,000 down with 7% interest on a long term note. Here’s where it’s pretty interesting: the apartments are very small and don’t have kitchens. The complex used to be a low end motel until it was converted into a kind of short term apartment complex. I thought it sounded like a property management nightmare until I learned that the current property manager just gets to live in the house for free, and in exchange he keeps the units filled and does most of the needed repairs. Any advice on whether or not to do this deal? Each unit needs a little fix up, but should I attempt to put small stove/ovens and small fridges in so each unit has somewhat of a kitchen?