Senior Slow Starter Needs Help

[Kathi Z.]

New to BiggerPockets, I have wanted to be a real estate investor since the 1980's but was not able to get started until now at age 60. So happy I found this site!

I am a Realtor, working the central Florida East Coast. Here is my plan and I will appreciate input as to its feasibility, caveats or flaws:

Wanting to live beachside, I have been looking for a 2/2 condo directly on the intracoastal waterway with ocean views. Also wanting to invest and accumulate rental properties, I found a condo building built in 1972 with several unadvertised units for sale by the ORIGINAL owners or those that inherited. The subject unit is on the 7th floor with breathtaking river & ocean views with original everything! Priced at $110,000 here is the situation. Original owners died, unit inherited by daughter, daughter passed in January of 2013 and her elderly out of state husband put the condo on the market right away. It now has been on the market over 200 days.

My plan is to ask for owner financing - 0 down, interest only payments for 1st year (based on amortizing $100,000 @ 5% for 15 years - market value is currently $89,000), balloon of $5000 end of first year and continuing same scenario through 5 years with balloon of $5000 at end of each year. No prepayment penalty. I will be responsible for HOA of $300/mo & property taxes of $2000/yr & all maintenance of unit and I will live in it while renovating everything over the first year. When renovation complete, I will rent the second bed/bath @ $700 a month and as soon as I acquire another single or multi-family property, move there and begin the same all over again, and so on. I would rent my bedroom at the subject property for $700 also, making the unit's cap rate at 12%.

Would this make sense for my first real estate investment?

Thanks,

KZ