Potential 3 Property Off Market Deal

[Kellyn Cameron]

Hello Everyone!

I'm looking for advice/ideas on how to structure a potential deal. It is an off-market deal with another investor friend. I think it's the type of deal that could really help me scale my business but just not sure how to structure it. Also, I feel a little like the deal is basically a bet on lower interest rates in 3-5 years, which I'm not sure I like. All properties would be buy and hold. Any feedback good or bad is welcomed. 

Purchase Price: $555,000

Downpayment: $25,000

The seller has agreed to finance 10% (55k)

Estimated interest rate: 8.5%

Loan 1 (bank) - $475,000 (est. payment $4122)

Loan 2 (seller) - $55,000 (est. payment $329)

All expenses (Mortgages, Taxes, Utilities, Insurance, 15% of gross rents for repairs, vacancy, etc.) = $6600

Rental income = $6420 (room for growth here)

So my question is... is it worth basically breaking even and hoping the interest rates go back to normal levels? Pros would include getting to 3 properties for only 5% down. All units are basically turnkey outside of a few small cosmetic repairs I can handle myself. Deals are tight right now with the interest rate where it is and I think this could be a good opportunity to get in for low cost. Any thoughts are appreciated! Thanks everyone!