First rental analysis advice

[Antoine Basquiat]

Hello,

I am a new investor in the Raleigh, NC area and a new member of the TREIA group. I am a software manager by trade with experience in 3D design, websites & general construction. With a love for organization & spreadsheets. While my wife has experience in property management, both residential/commercial & is currently studying to be a realtor. 

I have been practicing analyzing multifamily housing in the area to purchase my first rental property. With plans to eventually branch out into various other states outside of NC. On my own I have been finding some potential deals that I think look good on paper, but currently stuck at that phase & slowly watching potential deals pass me by.

I would like to get some more information on a current property of interest & take the next steps but would like to procure the needed funds first. This way I am not wasting any ones time. If current property of interest falls through, I would still like to have the procured funds available/pre-approved, so I can enlist some help from an investor friendly real estate agent &/or wholesaler moving forward. I know I do not need the funds available to work with an agent, but would like to do so for a quicker close, potential search criteria & for piece of mind on my first deal. 

I have listed some info below on this potential deal to see if anybody had any opinions. Is this a good deal? What financing/investing strategy would be the best to move forward on the below deal? Although we have family in the military, we are not veterans ourselves & do not plan on house hacking this property. 

Thank You,

Antoine Basquiat

6 Unit Multifamily    1 bed 1 bath each unit w/ own backyard/parking

Repairs needed for some units -> Need to contact for more details on this

Tenants pay for Utilities. Landlord pays for trash pick up.

Purchase: $165K before repairs (Depending on repairs price might be negotiated)

Annual Taxes: $1,258

Current Rental Income:  $375/unit

Potential Rental Income: $600/unit (based on comps I could find & rentometer)

Cap Rate: 23.87% (based on potential income) 

BP Rental Calculator: Numbers based on 20% down but if possible would prefer $0 down payment

• Monthly cash flow: $1,538/mo
  Income: $3,600/mo
  Expenses: $2,061/mo
  CoC ROI: 25.9%

[Dan DiFilippo]

@A Schwartz we're somewhat lower-lying than you guys up in Raleigh, but we don't have that much in flood zones. Properties that back up to or are otherwise quite close to a moving water feature, sure. But I don't know, for example, of any subdivisions that are 50%+ in flood zones. Maybe one. Unless you're east of the Cape Fear River, you won't find many large tracts of flood land, if any at all.