So I tripped on to a great deal... i think

[Glenn Lovelace]

Hello BP,

It's been a very long while since I posted here on the forums, but I never stopped working towards my second buy and hold.  I've been studying up and absorbing everything I can from this site and from listening to the podcasts while I'm supposed to be working :).

So this week while running the numbers on multi-families (I do that in my spare time) I came across a potential life changing property.  I came across a seller who is retiring that wanted to cash out his empire and ride off into the sunset.  He's pushing 80 and didn't want to wait 7 years for the balloon.  So from my studies here in Bigger Pockets Land I new that the seller could still decide to carry the loan then turn around and sell the note the next day. Win win for both of us.

From back and forth with the buyer we were able to settle on these terms for seller financing:

Asking Price: 625K

Offer Price: 625K

Rate: 0%

7 Year Balloon 30 year Loan

35K Down

Stats on the Units:

Neighborhood: Baltimore City Great Neighborhood - Bolton Hill - Walk to MICA

6 Units

2Units rented at $1200

4units rented at $895

Yearly Taxes :$8K per yr

Yearly Repairs:$4K per yr

Water:$2300 per yr

Heat:$3500 per yr

From my calculation I will cash flow 2335 per month after I plan on 10% for management saving 10% for Vacancy and Maint and 200 for Insurance. Everything looks good to this point but I wanted to run it by the best REI site in the world. What do you all think?

Glenn