Would you buy this 8Plex?

[Tom Henderson]

Team,

I'm looking at an 8plex currently in Minneapolis... 4 x 2-beds, 4 x 1 beds... Below are some #'s. For a downpayment of $100,000, is this property worth it? It is in a very nice area, 3 blocks from where I owner-occupy my 4plex.

I would also have a monthly dividend payment to investor for $600. So there is not a town of cashflow from the current rental perspective. There is upside in this part of Mpls, and appreciation/tax advantages/mortgage pay-down will all be nice.

I am not putting a dime into this one-- I am splitting with an investor 50/50. He will cover downpayment.

Given these #'s, What would you do?

Price per Unit: $68,750.00

CAP Rate: 6.73%

Monthly rent: Purchase Price: 1.16%

50% Rule: 48.64%

NET OPERATING INCOME: $37,041.00

ANNUAL CASHFLOW: $8,241.00