I'm wanting to learn more about REI and I'm admittedly very new. Not really in a position to buy now, but I wanted to have some practice at "running the number" and someone from here posted and said you should practice running at least 1 deal a day?

I wanted to propose a deal I found and run the numbers past this much smarter, million strong community for input. As the saying goes, "you don't know what you don't know" and I'm sure I'm missing key pieces of info. I'm going to list the specs the way the seller has pitched it. That way you can see how the deal is being presented and show me what it's actually lacking / concealing?

(FYI I would guess these are Class C rentals based on the pics and avg rents)

The Deal

2x Triplex units sold as a package. (all 6 units are 2b/1bath). The buildings were built in 1972, each unit is 900 sq/ft, single car space with extra parking around the front and back, the 2 buildings share a water meter which is why they're being sold together. According to the listing "rent ready, minimal cosmetic updates needed"

Unit 1: Fully rented. Rents are $1100, $1050, $1050

• Market Rents: $1150/ea (supposedly) [need to do my own research on market rents]
• Purchase: $425k
• Down payment: $60k
• Seller carry note is $365k, 4% int. 43-year amort. Payment is $1500/month w/ 10-year balloon

Unit 2: 2/3 rented, 1 vacancy. Rents are $900, $900, $900

• Market Rents are $1100/ea (supposedly)
• Purchase: $400k
• Down Payment: $94k
• Seller carry note is $306k 4% int, 30year amort, $1461/month with NO Balloon

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The seller says my offer needs to be: $154k assignment fee closing costs

Total purchase $825k

Total monthly payments $2961 and no prepayment penalties.

Then they list "your offer should include what assignment fee you are willing to pay above the $154k down payment"

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This seems like a "good deal" and therefore it makes me wonder what I'm missing? Why would you sell a cash-flowing building that's almost 100% rented, AND continue to carry the note for the buyer? I get wanting to unload property that cash-flows to deploy in a new project or something, but this guy wants to keep paying the bank for the buyer and collect 4% interest for his efforts (am i reading that right?)

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Thanks for taking the time and helping me get educated :)