HELP!!!........ APARTMENT DEAL ANALYSIS!!!!

[Justin Young]

I'm working on this deal, it's an off market deal,  nothing is in writing yet, I just need help trying to determine if the numbers are ok.

I know the owner of an apartment complex. He text me and said he may be willing to sell for the right price if I was interested and that he has one more offer coming in sometime this week.

The deal:

Its a 47 unit apartment complex ( duplexes and quadplexes). It also comes with a 3/2 house. Making it 48 units.

He wants $2,200,000. I asked if he would finance the 20% down payment for me, he agreed. (loan term and interest rate undetermined at this point)

It appraised four years ago for $2,200,000. 

I went to my bank and asked them if us ( me and two other business partners)  acquiring this property was a possibility and also explained the seller was financing the 20% down.  The seemed very optimistic and said they would like to work with us on this deal. To sweeten the deal for the bank we offered to also put up three of our rent houses that we own free and clear as an additional down payment. It comes out to about a 25% down payment total. ( We are still waiting for the loan committee to complete the spread for the final word).

It would be a 20 year loan from the bank. 

The numbers:

48 units at $625 for total rent of $30,000/month

$13,000/month for the bank mortgage 

$5,400/month for the 20% down the seller financed ( if I get the terms I want).

$1,900/month for the water bill 

$1,100/month property taxes

$500/ month insurance 

$2,100/month vacancy (7% vacancy rate)

I'm still waiting to see what the maintenance expenses have been for the last three years. 

The roofs are less than 3 years old and the exterior is in great shape, it has also been painted within the last three years.

With these numbers (still waiting on maintenance cost) my cashflow would be $6,000/month. To me personally that doesn't seem like much cashflow for so many units.

My questions:

What do you think about these numbers?

Should I use a commercial lender?

Can I get a 30 year note instead of a 20?

Whats a fair deal on the terms of the owner financing the 20% down? I was thinking 10 years at 8%.??

Is there a better way to structure this deal? How would you do it??

Any help is greatly appreciate. Thank you in advance.