475k listed price, property on the square
Please help me analyze this deal.
Property is located on the square in my city. It's going to be owner financed with the following conditions, 10% Down at at 6.5% APR rate, listed as 475k, with two units, that owner works out of the building and they would be locked in at 5yr lease with combined 2900$/month for both units.
I'm figuring the monthly payment for the unit would be around 3300 which wouldn't even be able cover expenses. The only way to make this work would be to get it for the right price. Units such as this one usually are under commercial loans which require more down and come with higher insurance. The fact that this is owner financing is great. It's a pocket listing and won't be open to the public until April. The thoughts of getting a property on the square is enticing. The market in this city is growing pretty heavily.
So there it is.
What do you guys think?