Is this deal any good small multi family

[Johnoson Crutchfield]

So here’s what I got.

8 unit building in location 3 hrs from my personal residence.

Purchase price 157500

Current rented out 3 units at 400/month.

Seller offering to finance building with 27500 down. And have the rate adjust yearly. Taxes 2000/year. Insurance 2500/year. Rate currently 5.5%. He agrees to have all payments made to bank on a wrap around mortgage with a 5 year balloon.

Needs 85k in rehab but this does not have to be done all at once. 3k would go along way in each of these units. Outside needs 5k in paint and woodwork, and roof is on its last leg.

My plan would be to get the building stabalized and then hold or flip to another investor. Location is iffy. Small town with some him crime reported. Possible rents could get be pushed to 3600 total. Garbage 100/month

Is this a deal? How do I finance as the banks in the area want me to bring 20% of purchase and all of rehab. I’d like to try to get all rehab and purchase back after stabilized. Part of me feels the purchase price is too high based on the work that’s needed.

Your thoughts?

John