partial owner financing

[John Bucknum]

I am trying to analyze a deal that was proposed to me and am having trouble running the numbers. Probably something simple I am missing or the deal just doesn't make sense.

3 condos, the owner has 14 out possible 48 in this complex and if the deal goes through may lead to more deals with her.

the condos are 1/1, 2/1 and 2/2, she is asking 76k for the 2 2/1s and 64k for the one bedroom. total 216k, she would hold a second position note for 30k with me putting down the remainder of the 20% down (13,200) and pay closing costs. she would like 6 payments, one each year of 5200 for 6 years which comes out to 31200 total, about 1.5% interest rate if my calculations are correct.

For simplicity, I am counting the 3 as a triplex, so rental income is 2325/month, tenants pay for electric and gas, HOA of 185(555) per pays for water, sewer and garbage as well as exterior and common area maintenance, snow removal, grass cutting, etc. taxes are 266 and insurance is 50 month (HO-6) policy which I hadn't heard of before. I put vacancy and Capex at 5% for 116/month and repairs at 10% 232/month. wasn't sure about these numbers with condo fees. P&I comes out to 1160 month and if I divide her payment over the year comes out to 433 month.

Would really appreciate some input on the deal.

thanks