4 unit (about 1k sqft each) - Johnston RI - *Looking for Some FB*

[Viktor Zguro]

I'm currently negotiating an offer for a 4 unit home in Johnston RI. I've been working with a really smart agent and he recommended Johnston as one of the nicer areas in RI for multi family investing. All separate electric meters and gas, water is included. Currently there are 2 bedrooms in each unit. The first 2 units feature double parlor/living room, which can very easily be closed off and made into a third bedroom. The third floor has 2 bedrooms and an extra room (same size as both of the bedrooms) being used as a living room. I consider it a bedroom, so technically the third unit is 3 bedrooms. The 4th unit is in the basement and features an open concept kitchen/living room and has 2 bedrooms. Very solid house...needs absolutely nothing. You could just freshen the place up a bit with some new paint and carpets 

The units are currently occupied and they're paying about 1k per month in rent. From the research I've done the first 2 units should be able to collect at least $1500-$1650, the third floor can collect at least $1400-$1500, and the basement unit can get $1200-$1350. Like I said units are in really good condition and need absolutely nothing. Guy across the street is advertising his renovated units for $1750 (3 bed, 1 bath).

*One unit will be occupied by me*

The current deal(s) I have negotiated -

Purchase Price: $518k

Credits: $7k credit for closing costs (from owner)

Financing: 3.5% down ($18.1k down)

or

Purchase Price: $539k

Credits: $7k credit for closing costs (from owner) and $21k credit to my pocket (cashiers check).

Financing: 3.5% down ($18.9k down)

Essentially, I get my down payment back and have no skin in the game. Yes, I end up paying a bit more in interest over 30 years, but I can just refinance after year 1 bring my mortgage down. I'd rather have my cash back and use that to put into another property, instead of having it tied up in a home.

Looking for some insight from anyone that has property near North Providence and Johnston. I know Johnston approved a new Amazon Facility over the summer, will add at least 1500 jobs. What are you thoughts on the deal? What could I pull in for rent?