RE: 6 units Deal analysis

[Dee Xixi]

Hi All,
Please help me determine if this deal is a work away or at least a decent one.

Purchase price: $255,000
Rehab: 0
Total Expenses: $21,657
Total Income with 10% Vacancy: $49,680
Seller will carry: $40,000 at 9% for 3years.

However the seller condition is a bit wacky if you ask me. Read his email below. Any advise on counter offer sellers email.

Sellers email

The sale price is $255,000.00. The second mortgage amount of $40,000.00 must be secured with another instrument other than the property. If the bank has first position, I do not have any protection in the event of a default. The buyer must produce some form of unencumbered personal assets to guarantee the loan amount. The buyer noted in an email below that he will "personally guarantee the seller note." I would like to know how he plans to do this. I do not plan to take any risks in this transaction.

In addition, the terms for the second loan is for three (3) years at 9% which should include mortgage and interest. I am not interested in an "interest only" arrangement. There will be a pre-payment penalty (a percentage agreed upon between seller and buyer) if the loan is paid-in-full before the three year term. Also, I will not be using a broker in this sale. There has been no communication between me and the buyer's broker. All discussions to date have been between Donald and me. Any broker fees will be the responsibility of the buyer. Finally, the buyer has agreed to purchase this property "as is" with no provisions for the seller to further improve the property.