Too big a nut for first deal?

[Andy Kurtz]

I've found a potential deal, but when I ask myself 'what's the worst that can happen?', I get spooked. Here's the details - 16 units spread across 4 buildings. All roofs/heat/water are new within last 5 years. 11 units are rented, 2 are vacant, and 3 need to be rehabbed. Rehab costs would be approx $45,000. Neighborhood is a blue collar C area. Crime rates are very low, but the properties in the immediate vicinity are blighted. The town has approved nearly $1 million in grants to renovate these eyesores, though I do not know specifically what that entails. Current operating income, with the vacancies, is $110,000 annually. Expenses approx $30,000 Asking price is $900k, however I learned the owner owes only $120k. He is selling simply because he's burned out, and would like to retire. I did not float the idea of seller financing, but it given the equity position, it may be a possibility. What I like about this deal is, the major cap ex's have been handled, and there is still meat on the bone to increase the cash flow by filling the vacancies. Maybe I'm wrong in this, but when I look at most opportunities, I ask myself if I could male the debt service payments if the property was 100% vacant. For deals up to $350k I could, but this is a different animal. What also makes me pause is, even though this is a small rural town, there is another seller trying to unload an 11 unit complex, who sounds equally as motivated. Makes me think there is more to this town's story. I'm also not a huge fan of my first deal being a 75 minute drive from my house. I'd almost be forced to hire a property manager, which at 8% becomes dicey. If I can get owner financing, I may jump on this (or even wholesale it). My question are twofold: are there any blind spots I am missing when evaluating this deal? And am I nuts for taking the mini/max approach to any deal I evaluate? Thanks to all for your input