It may be sufficient for small positive in class b (probably not - likely still negative cash fliw) and would be cash positive in class A.And 1% ratio is still a near unicorn find in San Diego.  

I am invested in a small multi family in TX and the management was not able to fill the property and do repairs and the income has dwindled badly.

The friend who shared this deal with us offered to provide the loan.

For a 203k loan, you’ll want to target areas that have properties needing work but also a strong potential for appreciation after rehab.

It had been sitting around for awhile and was a good small deal to get my feet wet.

Quick question on those who have done seller financing:- Buying a 0.3 acre downtown fort lauderdale multi family, negotiated an around 1M price w lot of development rights, double lot. seller got it way back early 90s for pennies- got good credit 800+, w2 job etc put 40% down and mortgage bank offered 6.62% 30yr fixed (CF negative as this would make current rent roll not too much compared to the PITI)- property is in ok condition, needs 20-30k repairs which seller OKd, and all 3 tenants are month to month, pay bit under market but also ok- seller would like to do seller financing, interest only at 5.75%, 30yr amortization at 7yr balloon (CF would be positive) - id be paying some principal as well, just to grow some equity- buying this deal for the future development of the area (las olas, kushner broward crossing) so not really worried even if we overpay for it now, but never done creative finance as i always relied on a strong W2 job to get good loans but obv im used to 3% 30yr rates from covid times not this 6+ environment..Goal is to hold the property 3-5yrs, and then actually develop it or sell half the land / refinance, pull out HELOC if it appreciates.Questions:1) What does he know that i dont? 

Small multi-family properties starting at over $1M, which is pretty expensive and, resale single family (before year 2000) offer minimal cash flow (~$200-300/month).2.

These are the outstanding balances of loans to and from Partners and Related Parties.

These are the key to getting a loan.  

TN is a more small business friendly state.'