Real Estate Deal Analysis & Advice
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by

1031 Exchanges
presented by

Real Estate Classifieds
Reviews & Feedback
Updated over 9 years ago on . Most recent reply

Need help analyzing this seller financing
I am looking at purchasing a 27 unit that has seller financing. Here are the terms of the financing:
Purchase price: $339,000
Down: 25%
Loan terms: 5 year term at 6% with a negotiable amortization schedule
The units are 1 bedroom/1 bath at $450/month and 100% occupied. The big expense seems to be landlord paid utilities which are averaging $170 per month per unit. The current rents are about 15%-20% below market.
The downpayment wouldn't be a problem but my real concern is whether the cash flows would be positive given the 5 year loan term. Any advice would be appreciated!