Nervous... 10plex Deal or no deal?

[Leah Roberts]

I am looking at my first "large" real estate investment. I have a seller who wants to sell 3 duplexes at 140K each where I would buy outright... finance with a bank either separately or all together on a commercial loan and 2 duplexes at 25K down at 5.5% for twenty years where he wants to do a land contract. Each duplex brings in about $1650 gross a month. The numbers look good but I am nervous I am missing something. I don't know much about land contracts and what would happen if something should happen to him/ or his loan. After running the figures it appears the whole $700k purchase of all 5 duplexes would cashflow $23K a year. Is there something I need to know before I get into a land contract? Running the numbers through biggerpockets calculator looks even better than the proforma he has given me. Has anyone dealt with a deal like this?