Hi All. I am improving the kitchen and need your advise on the backsplash tiles. I had mirror doors and have already replaced them for frosted glass, I still have to rearrange the shelves as they are visible through t...

sounds like you have a great opportunity. i recommend the contact for deed route. as you mentioned you can get a lower down and more flexible terms. if you can get a 10-12 year ballon payment you should have no problem refi'ing out prior to that with a conventional loan and pay off owner contract. i would try to get the per unit down. you could try to show the total amount you would be paying when you add interest into the equation and see if he will come down on asking price, at least to market if not below. as well as play up the continued cash for with zero management headaches. ultimately if it cashflows well and you have good fixed debt for 10 plus years my experiences has been that price per unit is less of a factor. cash flow is king.

I believe the 1.3M was assigned something like 800K in land value and 500K in re-design and physical improvement cost (we had an approved but not yet built 45 unit apartment addition to the existing 135 units which required design revisions).

Waiving inspections can be a huge negotiation factor so I wouldn't suggest dismissing that idea for future contracts.  

Factor in things like a property manager, even though you won't need one up front. 

I was very attracted to their home remodeling templates, in which you can choose from a number of different room designs and download all the necessary materials/SKUs for the contractor to do the job.

@lakshmi chari There are many factors to consider when purchasing mortgage notes but I’ll just name a few things to help you get a general idea of what to look for.1) The area the note is in.

There is also a high correlation of unaccounted costs, "missing" expenses and other shenanigans (a tenant gets cheap rent to be the de-factor PM) that do not appear on the owner P&L. 

That would have to be factored in as well....

In my experience there are plenty of people that will rent out a small well-designed space as they are passing through or even to take a break from city life.