Would you consider this

[Jeff Lubeski]

I am looking at buying a property. It has 3 units. Gross rents are $2400. The owner will sell under a land contract with 20% down and 6.5% interest. Selling price is $152,000. If I assume 8.3% vacancy and 15% maintenance, I would net around $500 / month. The issue is this is a non-conforming property. There are 2 buildings on one lot in a zoned SFH area. It does not look like the property could be split. I have talked to the local municipality and do not foresee any issues. The main issue is this property will always be non-conforming and if I wanted to sell, it would probably not be easy.

Thoughts?

[Chris Adams]

Personally I pass on properties like this every time they come up. I have no desire to build my portfolio around future headaches.

Furthermore this seller isn't doing you any favors either. 20% down and 6.5% interest can be beat by most any lending institution if you have good credit, and this property runs a at a 1.20 or better DSCR.

Add in the non conforming issues and this seller should be doing much better than he is with his terms.