Chance to buy LTR with 100% financing - good idea?

[Christian Anouge II]

I have an opportunity to buy 7 long term rental condos in a strong rental area. Broker said he can get me a loan for 70% of the purchase price at 5.99% and then pull the other 30% from 3 units I currently own free and clear thru a cash out loan also at 5.99%. After taking into account monthly expenses (HOA dues, taxes, insurance and both mortgage payments) the 7 new properties will only cash flow about $150 - $250/month total ($21-$36 each unit/month). The rents are currently under market by about $100 each unit and current leases expire in March and April 2023. My realtor (who is a personal friend) says it is a good idea as long as it cash flows anything positive. Purchase price is $1.25 million - so I am not sure if he is motivated by the commission or if his advice is sound. I am concerned about taking on 7 more units for such a small cash flow with the potential for 7 more headaches. I personally manage my properties (I own 6 other LTRs) but am self employed with a full time job in a profession unrelated to real estate. I was also concerned when I bought my 6 other LTRs in 2020 and early 2021 but they have turned out to be a great investment with about 50% appreciation in value and very strong rental income. As an aside the cap rate is 6.1%.

Is the 100% finance a good deal even with the minimal cash flow? Am I being too conservative or are my concerns valid?  Any advice would be appreciated.   

[Chris Svendsen]

To me way to little cash flow for that kind of investment plus Condos can screw you bad if there are special assesments or mismanagement of funds.  I have only 4 rentals and bring in almost $2k a month in positive cash flow after expenses.  If was investng in that many units would want at least $2500 a month in cash flow to be comfortable with purchase.