Help with a 6plex!

[Myles Strong]

Hello BP Community,

Need a lot of help on this one as I'm still a newbie with deal analysis (and everything RE related). I was casually browsing RE listings on craigslist and I came across an FSBO 6plex with an offer of seller financing. So, wanting to start analyzing deals, I shot an email to the poster to ask for more details concerning the property.

So, they provided me with a spreadsheet of their revenues and expenses and the recent renovations they have completed. Right away, I was worried as I did not see the usual stuff I have become familiar with by reading BP posts and by listening to podcasts which are expense categories such as repairs, maintenance, landscaping, etc. Yet, I continued speaking to the owners and asked about the owner financing and here is where my senses told me this probably would not work out and where I decided to ask the wise minds of BP to help me out!

The asking price is $539,000

The owners would provide 20% to 25% owner financing at 5.5% interest for a maximum 5 year term. 

The rest would have to be financed through a bank or whatever means I could find (I did not even check into that yet as I do not know where to begin). 

Using a spreadsheet I found online for apartment buildings, I ran the numbers for the owner financed loan and then I used a hypothetical percentage on a 30 year mortgage. Now, using that spreadsheet, the number came back that from the two loans alone the whole monthly income would disappear! And that was taking out every expense such as maintenance, repairs, landscaping, etc that the spreadsheet automatically calculated for me! 

Now, I know most of you are reading this and thinking of all sorts of things that I forgot or should look at or need to know but I just wanted to get the ball rolling on looking at deals and wanted to know what the BP community thought about this one! Any help would be appreciated as I know I'm out of my depth but I wanted to get the ball rolling on real world analysis and interaction.

Thanks!