The rental arbitrage business can be very lucrative but will test you and your ability to implement and delegate systems/checks and balances/S.O.P’s.

(Example, property LLC #1 has $10k cash on balance sheet, but property LLC #2 has none and needs a $10k roof).  

It's all in the balance. 

The buyer is paying 20% down with a 7% interest on the remaining balance.

I think family could have purchased for a small percentage under appraisal, even if balance owed was higher, if they wanted to keep it then sell it themselves.

Typically, getting into the 5-unit range can get overwhelming for people and take up too much of their time if they're focused on scaling.Real estate bookkeeping is very balance sheet heavy and that's where the mistakes are made if you're managing the books yourself.

If you sell, you'd just pay off whatever balance was owed at the time of the sale, the same way you would with conventional financing.If it cash flows for you while providing income for him, I think it's a win/win. 

Thanks for the reply Jon, looks like I have to come up with the proper deductions in order to balance it out!

My other option is to pay off the balance on one of our mortgages and cashflow more. 

Hopefully it'll help balance out instead of hurting the entire industry badly.