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Seeking Advice on a Real Estate Investment Opportunity - Personal Context Included

Hello fellow Redditors,

I hope this post finds you well. I've come across an intriguing real estate investment opportunity, and I'd love to get your valuable opinions and insights on the matter.

To provide a bit of context, I'm 33 years old, married with two boys aged 5, and my wife and I are expecting another child. We currently reside in Morocco, Africa. Our family income, derived from our regular jobs, amounts to $3,500 per month. Additionally, I run two small businesses, although they are not yet generating profits.

Now, back to the investment opportunity – I've been offered the chance to purchase an 85m² apartment for $60,000, which is approximately $8,000 below the current market value. The property is currently leased to a tenant, generating a monthly rent of $200.

The proposed transaction involves paying an upfront deposit, and the percentage of rental income I receive is directly linked to the percentage of the total amount I advance. For example, if I advance 50%, I would receive 50% of the rent; if I advance 40%, I would get 40% of the rent, and so forth. The remaining purchase amount would be spread over 3 years at 0% interest. After this period, the property would become fully mine.

Considering our current family situation and my existing property ownership status, I'm seeking your advice on whether this new investment opportunity seems wise.

Here are some specific questions I'd appreciate your thoughts on:

Does the discounted purchase price and the 3-year, interest-free payment plan make this a sound investment, especially given our family's income?

How common is it to tie the share of rental income directly to the upfront deposit, and does this approach seem reasonable in our circumstances?

Considering our financial situation and my current property ownership, do you believe diversifying our real estate portfolio in this manner is a good move?

Are there any potential pitfalls or red flags that I might be overlooking in this proposal, especially given the additional financial responsibilities with a growing family?

Your insights and experiences will be immensely helpful in guiding my decision-making process. Thank you in advance for taking the time to share your thoughts!

submitted by /u/Maadxn
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source https://www.reddit.com/r/RealEstate/comments/197ystf/seeking_advice_on_a_real_estate_investment/
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