What to consider when buying multifamily for the first time

[Amy Lin]

My husband and I are thinking to add a multifamily to our investment portfolio. We mainly have single family properties in Texas at the moment. We came across a property that is walkable distance to a university, 6 one bedroom units and one 3/2 unit. On the listing, it said the property's projected 5 Yr IRR of 20.2% IRR before Value Add Program. The listing stated if we put in 3k into each unit we could raise the rent $100 more than it is currently rented out for.

Is it a realistic IRR? And what other numbers or important factors should be considered prior to moving forward with the deal? Thank you in advance.