Structuring this deal

[Jarandy Manidiu]

How would you structure this deal?

There is this guy who is selling 4 two bedroom 1 bath rentals for $45,000 each. The properties are renting for $450. He's also willing to sell the properties in a bundle for $180,000 with 10% down carrying the note for 5 years at 10% amortized over 30 years.

Is there a deal here or does it need to be restructured if so what are your thoughts on structuring the deal so that it is good enough to assign to an end buyer?

[Account Closed]

Originally posted by @Jarandy Manidiu:

How would you structure this deal?

There is this guy who is selling 4 two bedroom 1 bath rentals for $45,000 each. The properties are renting for $450. He's also willing to sell the properties in a bundle for $180,000 with 10% down carrying the note for 5 years at 10% amortized over 30 years.

Is there a deal here or does it need to be restructured if so what are your thoughts on structuring the deal so that it is good enough to assign to an end buyer?

At 10% interest your payments to him are at least $437 per unit. You also have vacancy rate, property taxes, insurance, maintenance, repairs. How do you make any money?

Ask him if he is wanting to limit his tax liability or is he looking to be cashed out.