She's thinking of trying to assume the loan but I told her I'd try to see if there is a better way to move forward.

Option 1: Lower Down, Higher Rate (10-15 Year Term)For the Seller: Steady cash flow, better return than banks/CDs, avoids capital gains hit all at once.For You (Buyer): Lower upfront cash, keeps more liquidity for operations, long-term financing stability.Offer Price: $2.2M (Full Asking Price)Down Payment: $220,000 (10%)Loan Amount: $1,980,000Interest Rate: 8% FixedAmortization: 25 YearsTerm: 10-15 Years (Negotiable)Monthly Payment: ~$14,846 (P&I on 25-year am.)Why It Works for the Seller:They get a consistent $14,846/month income instead of a lump sum that could trigger taxes.8% return is way better than typical bank investments.Avoids broker fees (~$100K savings).No property management headaches—just collects checks.

.: *assumes CA averages for valuation, rent, profitability, etThere are strategies for starting small or starting big, that are discussed but I am not entirely sure what would be like too big for a first deal...My inclination is to assume that the larger the asset or more units the better, as there is less tenant risk, professional property manager, etc.

Is my math wrong or is there another better way to do this?

They're low LTV (generally 60-65%) I suggest you establish a relationship with one, as they tend to know the market and industry better than almost anyone else.

This also leads owners to ASSUME simpler is better when it comes to management contracts.

I know in the dead of winter there electric bill can be $600-800 a month but I really cant insulate it better without gutting the house which they also don't complain about.

While Mass Ave is highly desirable, you might find better deals in up-and-coming areas like Near Eastside, Riverside, or Mapleton-Fall Creek, which offer solid appreciation potential and rental demand.

Sometimes it makes sense to sell if the numbers don't make sense to keep it, there is better use of the equity, etc.Alternatively, could you do the cash out refi and build an ADU?

Fewer but better properties.