Help and advice needed on my first property

[Ganesh Shetty]

Hi guys, I am from Germany. In the process of committing to my first deal. It's an owner financing/ rent to own. Situation: The owner is separating from his wife and hence wants to sell his home. They bought the home together in 2013. The Home: it's a beautiful large home from 2005 with 3 bedrooms and a large living room with a new in built kitchen, completely renovated to a very high standard with a swimming pool, sauna etc. in addition, the home has 2 apartments attached, both of which are rented out. The house is close to 2 important north German cities and one can commute to both cities with ease. Sale price: 570.000€(home in germany) Offer from the owner: The owner put this as on germanys equivalent of Craig's list. The entire triplex is for sale with the following numbers: Sale price: 570.000€ Monthly rent: 1450€(net) Monthly repayment on rent to own: 450€(negotiable) Total monthly payment: 1900€/month(1450+450) Period: 7 years So over 7 years: repayment would be 450x 7 years= around 35.000€ Amount remaining on ballon payment at the end of 7 yrs: 535.000€( 570.000-35.000) Here's why I am interested: *The two apartments attached to the home are rented out for a total of 1200€/ month * The home on sale can be rented out for about 1500€/month. So, total monthly NET rent: 2700€/month My potential monthly cash flow: 2700(monthly rent)-1900(monthly rent to own amt to seller)= 800€/month Possible profit if I don't buy the home in 7 yrs: 800x12x 7= 67.200€ No money down. Even if I buy the home after 7 yrs through conventional bank financing: the monthly payment would be around 1800/ month. So what do you think guys. I am scared. Never handled such large sums of money. Never done a deal before. Just decided after following bigger pockets to take the plunge. Any pitfalls you guys see? What should I watch out for? Any advice would be highly appreciated. Thank you