Help me decide if this deal is worth it.

[Aaron Fuller]

Hello all,

I'll get right to it. I am in discussions to seller finance a townhome-style quadplex. Each unit is 2 bed 1.5 bath. Total sq. ft = 4500. Property sits on 1 acre. Paved lot with plenty of room for cars. Rural town but within walking distance to an elementary school, a high school and a nice restaurant. It is a very safe town. Always maintained, and in great condition. Built in the last 50 years but before 1990.

Currently rented for <$7000 gross but could likely be raised to >$8000.

Expenses are as follows:

Taxes - $13,000/Yr or ~$1083/Mo

Insurance - $3100/Yr or ~$260/Mo

Maintenance, Repairs, Vacancy, Trash Removal - ~$1000/Mo.

Now, seller wants 850k & 10% down, interest TBD. This will put me in negative cash flow for the first couple years. My expenses, PITI included, will be >$8000. I need them to be closer to 7k.

The hard part is, there are ZERO comps for this place. Couldn't tell you what a fair number would be. I definitely need to be below 850k. I'd rather be safe about it and ensure cash flow from day one. This is the first home I've ever (possibly) bought and my first investment property.

Any advice on how I should approach with my counteroffer?