Good morning BP. Firstly let me say that I'm using my girlfriend's account, for some reason my Pro account (@Joshua Pavao) won't let me make a new post! I will post directly under this with my account, so PLEASE tag that account if anyone responds. Thank you!

So I've come across 3 properties for sale, (8 units total + 3 bay garage), seller is willing for seller financing, and all communications are going through a third party who has agreed with me when I told him I believe the seller has an unrealistic view of what his properties are worth.

I was initially only interested in the first two properties because that are on the same lot and need to be sold together. Once I made note of how much it would cost to run the properties properly, and that the seller's terms are high, the third party told me that the seller would now be willing to throw in the third property for the price of the two I was analyzing.

Great, already showing some eagerness to drop his properties (same owner for over 20 years and definitely not maintaining)

They asked me to start with a letter of intent to see where I'm at for terms, and we can work from there, he said the seller may agree to 850k-950k (which I still don't think it's worth it, unless if it was maybe south beach and rents were 2200-2500!)

If I were to get into this, I'd want to do so with as little money up front, some time to turn the properties around, and only pay a wholesale price.

Before I list the financials, I'd like someone to answer: When a balloon payment comes up, and assuming I have these properties producing for me, will a commercial lender open a loan for all three together? Should I be looking at these as separate properties using Comps or judging them by the income like a commercial prop? Either way, they are NOT even close to being worth what he wants. The only thing that tempted me was seller financing, as the seller must have a good idea that what he has right now isn't the best in terms of operations.

Building #1 (4plex/ all 1B/1B) - $500K (lol!)

Unit # 1       1,018.00/12,216

Unit # 2       1,018/ 12,216

Unit # 3       1,018/12,216

Unit # 4      1,018.00/12,216

Total Rent Income 3,054.00/48,864.00   

Expenses

Repairs 1,345.00

Electricity 4,025.00

Insurance 310.00

Taxes 3,050.00

Water and Sewer   3,590.00

Total Expenses     12,320.00

Net Operating Income 36,544.00

Building #2 $350K (lol!)

(on same property as #1 - Duplex 2B/2B) Also has 3 bay garage supposedly rented at $100/bay

Unit # 1 - 1,060/12,720

Unit # 2 - 1,060/12,720

Garage - 300/3,600

Total Rent Income  2,420/29,040   

Expenses

Repairs  2,500.00

Electricity        0 

Insurance      310.00

Taxes           3,032.00

Water and Sewer    2,400.00

Total Expenses     8,242.00

Net Operating Income $ 20,798.00

Building # 3 (duplex 1B/1B) $285K

Unit # 1 -  1,018/12,220

Unit # 2  - 1,060/12,720

Total Rent Income - 2,078/24,940.00   

Total Gross Income - 2,078/24,940.00   

Expenses

Repairs - 1,380.00

Electricity 0.00

Insurance - 310.00

Taxes - 2,437.00

Licenses & Service Contracts - 65.00

Water and Sewer - 1,659.00

Total Expenses  - 5,851.00

Net Income$ 19,089.00

I'm not sure why the insurance is the same for all three properties, I don't know if it's 310 for all of them together, or if it's the same price to insure each duplex and the 4 plex?

Just for potential notes:

going by the numbers, the 4plex doesn't seem to have separate electric meters,

both the fourplex and duplex looks like a roof replacement is due,

some windows are boarded up (100% occupied)

driveways would need to be added (currently a dirt lot)

There is definitely room on the property to add another 4plex if zoning allowed (there is an apartment complex right next door so I don't see why not)

even the third property has a good chunk of land behind it considering what the norm is here.

There is a nice elementary school that is just being completed on the same street less than a few houses away. I'd say the neighborhood is a B - range, and in a city that has lately been having tons of tourists attractions built (this is South Florida after all!)

I believe rent could be raised, especially on the duplex with 2/1, but probably not by much on the 2/2.

The current owner is obviously getting all rents as "passive" income right now because he has no mortgage so I'm worried anything I offer may just seem like a horrible deal haha, and I can almost guarantee by looking at the properties, the money is definitely going into his pockets and not back into the units.

Any info is greatly appreciated and thank you so much for reading!