Help with Analyzing 1st 5 unit (commercial)

[Stephen Scire]

Hello fellow BP junkies, 

I have placed an offer on a 5 unit, hoping my #s are correct and a suitable investment.

there are (3) 1 bdrm  & (2) 2 bdrm

Offer/Purchase price=565k, cash out= 141k, financing =424k

CURRENT SITUATION...

Note: in the 1771 expense , 971 is taxes, ins, water, utilities (mandatory/immediate expenses)

                                                 800 is for future repairs, vacancy, property upkeep

,

gross, 4,748 - 1771 (expenses) -  2147 (debt) = 830    This comes out to a 7 % cash on cash return, with a cash flow of $166/door

* I plan on upgrading the 2 - 2 bdrm to bring them up to market price

keep in mind … 1 bdrm go for 1000-1100 ….. 2 bdrm go for 1300-1500

the 2 bdrm are the laggers.

PROPOSED SITUATION

with the upgrades to the (2)  2bdrm  units & $50 increase in the (3) 1 bdrm  units ….. (putting another 35k into it for upgrades)

gross up to 5950 =  now a 13% cash on cash with a cash flow of  $400 / door

I still have oppurtunities of building & offering outside storage units ( $25 / month)

And there is a need for washer /dryer conveniences which they don't have now , whether in units or in basement.

Am I going down the right road ? 

I have 5 units  , with 2 buildings now but its different, they're very close to home, this is 30 minutes away, not too bad, but a bit of apprehension on my part , even though I just placed the offer, LOL.

I really respect your thoughts and figures on this deal.