However if you have enough reserves, 6mo or greater then I'd say chance it but a couple of missed payments from the tenants and you have to foot the payments out of your own pocket.I'm all for taking risks but I think you really need to evaluate the age of the major systems so you don't get hit with a bunch of cap ex all at once as well as your reserves. 

Quote from @Tayvion Payton: Hey everyone,I'm evaluating a multi-family deal and could really use your insight.

There are so many variables and some of the biggest misunderstandings come from regional variances on how these variables are handled (mortgages & financing especially).I had thought progressing towards multifamily and then commercial was the obvious path to follow, but one conversation changed it all.

Quote from @John Keane: @Jay HinrichsGot it, I will definitely re-evaluate my profit split structure after what I have learned here. 

The cash on cash return is only meaningful when you evaluate it based on your long term plans.

In evaluating seller financed notes, there is always a balance between redeeming and non-redeeming factors. 

Since downtown development land goes for $30 million/acre, $100k imposed by the progressive city government for a 40 story building permit is a minor annoyance.

There's a big disconnect in Detroit's home prices vs the progress there, and I believe it will continue to close.

Would love to connect and share the progress on both our journeys! 

I’m excited about the progress so far, and hopefully, we both keep crushing it with our investment goals!