Four Plex apartment deal

[Kyle Koehn]

If someone like to play with numbers, I have a deal here that you could practice on. My neighbor would really like to sell his 4plex to me. He wants to build a house so needs some of the equity in cash. He is open to carrying a contract for deed for part of it though. The numbers just don't come out very well. I know there are ways with appreciation, compound interest, and the opportunity advantage of no money down that can cover over face value of a higher purchase price. If anyone has any good ideas let me know. 

As you can see, the rents are quite a ways below market value but it will take a while to get them worked up to where they should be.

The building is in really good shape. New roof 5 years ago. Quiet town, apartment close to a school so it has been popular with school teachers. I have the numbers figured as 100% financed. So if I had the owner carry a balance for 5 years until I could get rents stabilized to area rates that would help. Would still need to pay him off eventually. It will need to be reworked to get at least a bit of positive cash flow.