There are natural barriers to entry such as legal risks and minimum cash requirements and has a lot of complexity to buy and selling it (say compared to a computer or candy bar).

As you can imagine, that is a complex set of questions this early into things.

So it is indeed more complex that I had thought.That being said, my original idea of establishing a general partnership as a estate planning method is not that attractive anymore.

Probably something simple I am missing or the deal just doesn't make sense.3 condos, the owner has 14 out possible 48 in this complex and if the deal goes through may lead to more deals with her.the condos are 1/1, 2/1 and 2/2, she is asking 76k for the 2 2/1s and 64k for the one bedroom. total 216k, she would hold a second position note for 30k with me putting down the remainder of the 20% down (13,200) and pay closing costs. she would like 6 payments, one each year of 5200 for 6 years which comes out to 31200 total, about 1.5% interest rate if my calculations are correct.For simplicity, I am counting the 3 as a triplex, so rental income is 2325/month, tenants pay for electric and gas, HOA of 185(555) per pays for water, sewer and garbage as well as exterior and common area maintenance, snow removal, grass cutting, etc. taxes are 266 and insurance is 50 month (HO-6) policy which I hadn't heard of before.

Knowledge and risk move in inverse directions, especially for investors with lots of experience.Real estate is not a complex business. 

They vary wildly and can be expensive.If the condo complex is non-warrantable meaning FHA or Fannie Mae or Freddie Mac won't lend there, you have a problem. 

The current owner is basically pricing it at what the complex could potentially be doing if all of the units were being rented.

Whether it is a 50,000 home or a 5,000,000 apartment complex.

things to look for:Current rental demandCurrent rental supply - are they building more apt complexes/affordable housing? 

You may want to reach out to your accountant for verification.Also form 3115 is complex in nature - I would definitely leave the completion of the form to a professional.