23 Unit complex in Sioux Falls, SD

[Kully Millage]

Hello, I have a 23 unit complex under contract in Sioux Falls.  It is right at that 1.4m mark, brick structure, built 1980, and generates 800/m per unit.  The owner is 80 years old and is the original owner / builder of the property.  Really neat guy that I have had the pleasure of getting to know!  My question is as follows:

As a first time multi unit buyer, I am struggling to figure out the best way to buy.  Should I buy it myself- with a conventional investment loan at 20 percent down?  Should I split it with a partner 50/50 and split the down payment costs, potential maintenance consts, etc?  Should I try and work out creative financing with the owner, possible down payment with interest and balloon payment?  Perhaps I pass all together and let someone with more experience step in and buy it because I am in over my head? 

Obviously I understand calculating your CAP rates, figuring your upcoming updates/ maintenance, and crunching all of the numbers.. I am looking more for your simple answers, if that is possible.

Feel free to leave your two cents... 
 

[Kully Millage]

@Tj Hines @Mario Am @Justin Thiesse @Bjorn Ahlblad

Appreciate all of your input, all very valuable. I am giving myself some time decide what the acquisition is going to look like- or if there will be one I should say! I think one thing I can say for certain is figuring out some sort of seller finance if I am going to purchase myself. Could any of you guys elaborate on different structures for CFD? Down payments, interest, terms, balloons, etc... If you were in my shoes what time of structure would you be looking for.