Thoughts on land contract for 4 family

[Matt Heath]

Hello,

I would like people's opinion on a deal that I have going on. I know a seller who has been trying to sell his 4 unit apartment for $254,500. It has been on the market for almost a year. The seller wants to do a land contract for  $250,000 with 10 percent down and a 5 percent interest rate over 30 or 25 years. The property brings in $2,370 a month for rent, taxes are $4,500, insurance would be around $1,200, Property management would be $160 a month. The units are three one bedroom, and one three bedroom. 

The seller mentioned that after two years I could refinance the property. I talked to a bank and they stated that I would need 25 percent equity in the deal to refinance. Is this looking like a good deal? It would be roughly 20 percent cash on cash return but would I be able to refinance this in two or less years?