Need help with a potential acquisition of 32-unit property

[Virgilio Mateo]

Hi BP Community,

I am in need of some input from a potential deal I came across cold calling owners through craigslist. 

Property Location: Moss Point, MIssissippi

32 unit complex

4 buildings sits on 2 acres and all units are on the ground floor

All 1x1 units (Market Rent: $500/mo) 

60% Occupied ( most occupants are long term social security recipients ) 

Per the seller (seller from out of state) all vacant units just need cosmetic rehab to be market ready

Potential Gross monthly income: $16000 ( all units rented and are paying market rate) 

Current Total Gross Income: $7400 ( due to vacancy and residents paying BMR) 

Current Monthly Expenses: $1941

Monthly Note Payment: $3419.43

Asking Price: $660,000

Seller Finance Term: 

- Seller wants to be cashed out for the amount left over of the loan balance ($295,000). Note is until July 2027. 

(Seller closed on the property in 2017 for $420,000)  

- take over note ( current balance: $295,000 )

- Note terms are 6% no balloon payment, monthly interest and principle payment total is $3419.43

I am have never worked with notes but this seems like a good deal. I can either acquire the property myself or sell the note if I put it under contract. 

For my acquisition: I am planning to counter w/ 

- No money down

- take over the note 

-pay the seller $2000 a month with the intent to refinance in 6 months ($12,000) 

     - I will handle the rehab costs for the vacant unit (which is about $20,000) and lease all vacant units 

- Once the refinance has been executed I would pay the rest of the balance of $295,000 the seller wants. ($283,000)

If I were to put it under contract I would offer the following: 

- buyer will pay off the balance of the note ($295,000)

- Seller will receive $275,000 in cash because buyer will cover the rehab cost to receive the Gross Potential Monthly Income

- Seller will split the closing cost 50/50 with the buyer

I would love to hear some input from the BP community. If you guys have any suggestions on how I can close this deal, I would appreciate the help.