Newb looking for some advice on first deal

[Chris Drury]

Hi BP friends

So my uncle manages a bunch of properties in the DC area. He had introduced me to a potential great deal a few months back but already had an investor. Fast forward a few months and his investor ran into a financial mess and had to back out.

This would be my first foray into the investing side and I wanted to get some opinions. The down payment is a huge hurdle right now as I am trying to build up my reserves.

Here is the deal:
(Buy and hold)
4 houses in a C+ neighborhood all owned by a 85yo for last 20+ yrs. he is trying to get rid of his portfolio given his age. My uncle has managed them for the last five years and has a pretty good scope on the costs, pitfalls, ect.

Asking price (and matching recent 3rd party appraisal) $320k
25% down = $80k
Estimated closing costs $10k

All 4 houses are rented for a total of $5k gross ($60k annual)
(Many tenants for over 10yrs and 2 due for rent increase)

Mortgage ($240k) @5% =$1320
Taxes $8k
Management (uncle continues to manage) $6k
Insurance $3200
Maintenance $4k
Total expenses = $37k

Net =$23k

Assuming $90k investment, that comes to 25% return on cash!

My hurdle right now so I am looking at 50/50 partnership with a friend. I may need to split this again but hoping I can swing it.

Does this look like a good deal?
Any recommendations on partially financing the 25% down?
I may ask for some seller concessions to help with closing or holding a 2nd note, but he probably won't go for it due to age.
Do banks ever consider less than 20% down on investment props?

Thanks in advance!