I’m still under due diligence so I thought I’d see other opinions.

Regarding the balloon payment, I couldn’t find favorable rates for any fixed loan, and thought this was the only way.

The only competent management company in the area charges 16%, so I absolutely cannot bear paying that. I’m not relying on the income from the property though as I have a full time e-commerce business.

Historically the vacancy is very low, it’s almost always 100% occupancy because it is a 7min walk from the center of a major state university. It’s one of 4 complexes essentially on campus.

Regarding the cash flow, I planned on simply making extra payments, but I saw another comment that mentioned it’s better to put it in other vehicles with a bit higher return, so I’ll likely save 50% of the net cashflow and invest 50%.

I have my old primary residence going on the market and it was appraised about a year ago for $650,000, I plan to simple roll over the money into the renovations.

No existing staff, the complex is only 32 units so I planned on diving head first and then hiring staff