7 Unit building - one bedrooms - 550 sq feet

[David Moore]

I'm looking for other multi owners who have 1 bedroom units primarily.  I have done a load of research, getting ready to make an offer on a 7 unit building that is frankly hitting between 8 and 12 percent vacancy, and is stuck at about $650.00 per unit.  My max purchase price sets my ceiling at a 10 cap.  The building was built in 1960, has a nice exterior, and units are in decent shape, but need kitchen and bath rehabs.  Assuming I get the place, what do you think the appeal would be of adding a structure for a murphy bed in the living room?  There is enough space for one, and I'm thinking I can then market them as 1+ Bedroom, to enhance the value, and hopefully, enhance the rent.