Need a sanity check on this off-market Triplex

[Jordan Northrup]

Hey All, 

I need a sanity check on this deal. My property manager brought me an off-market triplex in a town where I invest. It's probably a C-class property. The neighborhood is ok, about 2 blocks from a major hospital. All units are rented around $600 a month with the potential to go higher. Each tenant is single, no kids, elderly, and on disability. My PM already manages this property and loves it. 

The owner is willing to consider seller financing provided the deal is right. He's asking $80k, but I think it's worth in the lower $70k range. The seller wants a 15 yr amortization...no issues there. So it's the rate, price, and downpayment that are flexible. I have $30k saved up to put to work. Maybe a smaller downpayment and higher purchase price? Or a larger downpayment and lower price? The latter would give me more cashflow, but ties up more my capital. The former is the opposite. 

Does anyone see holes in this? What am I missing?

S/f

Jordan

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[Chris Seveney]

@Jordan Northrup

Holes I see are you have allotted for 100% occupancy (no vacancies ever) and your expenses are very low on a C quality building.

Ask the PM to show you the P&L on the property for the years they have managed it.