Rental Property Purchase scenario

[Mark Fein]

I have been given the opportunity to purchase a SFH in Florida. The owner is willing to finance the property at 5% on a 20 year note with zero down. They are selling the home for $550k. ARV is $625k (although the market shifting makes that somewhat of a concern). It needs $25k in cosmetic upgrades and in the next 12-24 months will need a roof replacement for 30k.

The projected rent of $3200 would cover the P&I payment. I would have to cover approx $900 a month in taxes, nsurance, HOA and other maintenence expenses. They are offering a 30 year at 6% zero down but Iooked at the numbers and I am not seroiusly considering that option.

I own two other rentals both free and clear (one has a HELOC with a zero balance) that net $3600 in passive income . The passive income from the other properties would more than cover the negative cash flow on this property. I have good income and do not need the passive income at this time. My goals are long term, building waelth and long term passive income. I am 44 years old and the 20 year mortgage fits my timeline for an estimated retirement age.

Thoughts?