How do these numbers look?

[Peter Bardou]

ey everyone! Would love some advice on this potential deal.

A women I work with is looking to unload her 3 unit in a college town. I know the property is very well taken care of. Her husband is a highly respected contractor in the area and has don't all of the maintenance and repairs. The unit would most likely end up being rented to college students. here are the details:

Unit 1: 4/3

Unit 2: 2/1

Unit 3: 2/1

Current rent roll is $2500

Estimated expenses including vacancy(5%) maintenance(10%) and capex(5%) are: $2300

If possible I would like to roll in PM if the math makes sense

A few details I think make a huge difference:

1 meter on the house, so utilities are included in the rents

2 HVAC units, 1 is for the 4/3 and the other is for the other units

Porch needs some minor structural repairs.

The house needs interior paint, and some minor repairs

She hasn't raised rents in 6 years, and I know they are extremely undervalued. She has never run the house like a business. The house needs interior paint, and some minor repairs but, From the research I have done, I think the rent roll can easily be increased to $3000-$3500.

She is interested in seller financing and holding a 5 year note at 6.5%. She is asking $135k, with a $20k down payment. I personally think I can offer $120k with a $10k-15k down payment and she would bite. She listed the house for sale in 2014 for $150k and had no takers. Comps in the area are upwards of $180k...

Rubber roof in 2003

HVAC's probably have 10 years left.

The unit can be converted back into a single family home.

What am I missing here?!