Want to make a seller financing offer on a 4 family. What do you guys think of this offer?

[Michael Kev]

My main business model is to rehab and resell to an end user.

I got a call from a guy who owns a 4 family house. The layout is a 2/2/2/1 bedroom. Fully tenanted month to month except 1 who has a lease. He says they're all paying, not sure if it's true or not.

2 bedrooms in the area rent for ~$2,200

1 bedrooms are ~$1,400

I haven't seen the property from the inside yet, but it's around 3,200 sq ft. Decent for a 4 family.

Lets say I want to be conservative and say it can make $7500/month instead of $8,000/month. Let's say expenses are 45% at $3,375/month.

I was thinking of making an offer of $750,000 with $75,000 down, 5% interest for 30 years.

This would put me at paying $3623.55/month to him, along with the monthly expenses would put me at $7,000/month with $500/month in pocket. Obviously the cash flow isn't amazing (my market in NYC really doesn't have great cash flow) but I wanted to get your thoughts on this offer?

Btw, the seller hasn't expressed interest in seller financing (I only made him an offer that would make sense for me to buy & rehab) but I just want to get "practice" thinking of more ways to make offers. Any help is greatly appreciated, thank you.