I understand obviously I would need to consult with an attorney but I’m basically just trying to see if a deal like this is possible.

We include utilities in the rent, with the understanding that there's an allowance (~100 per month total) that goes for gas and electric.

Obviously that depends on the area and everywhere is different. 

This is obviously a huge blow to my entire real estate investing plan.

hello everyone,here is the deal there's a person selling 2 apartment buildings totaling 25 unit at an asking price of 425k a piece. my only experience has been purchasing properties cash or with a 30% down payment commercial loan. my insurance agent happens to know these people and suggested a land contract.

That's obviously not ideal, but I want to make sure my assumptions are correct when analyzing the deal.

That is not 7% of the profit but 7% of the total amount given to the seller.

@Natasha Richardson I totally understand. 

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

@Joseph Bogorad, put simply, anytime its principal and interest expenses total higher than 50% of its rental income (in this case, 61% at the asking price), you're looking at a probable negative cash flow scenario (given that your other expenses are commonly around 50% of its income).