Potential First Deal, Kind of Scary!

[Ty Dunse]

Hello all! 

I have been reading, watching videos, and listening to podcasts for years now about different avenues of real estate and think that I have learned lots. 

When I was listening to a bigger pockets podcast a month or so ago, they were talking about taking action and that you can learn all you want but if you don't take action, it doesn't matter. So I said screw it, started driving around my town looking at multifamily properties and taking down addresses for ones that I liked the look of.

When I got back home I searched the property records for the owners and sent hand written letters to ten or so people asking if they were interested in selling, and if so to give me a call. A few days later sure enough, a person that owns a 4-plex I liked hit me up and asked what I would offer! I asked him for the numbers on the property and said I would let him know what I would offer in a few days. 

The 4 units each rent out for $1600/mo each bringing in $6400/mo total. The building is 8 years old and the seller is the one that build it. It is located just across the street from the college in town minimizing any vacancy hopefully. Property Taxes come in at about $3700/yr and the snow/lawn would probably be around $1500/yr. (Owner does lawn and snow in house now.) Seller is currently paying taxes on an appraised value of $388k. 

Honestly, I was hoping to feel out a potential seller finance option, but don't know how to approach that as an offer. Obviously going through the bank would be more of a hassle and I probably wouldn't get approved for anything. (I'm 20 years old and no consistent employment as I am just finishing school.) I know that if the seller would accept anywhere from $450k - 600k, it would be able to cash flow and build a bridge for a refinance down the road. 

Actually getting out there after years is pretty exciting! 

Let me know what you guys think!

-Ty