5 unit rehab

[Bryan Ellis]

OK, still trying to get a handle on this here but I've got the next possibility. This one isn't under contract yet but here is how it looks.

Purchase price is 45K
Rehab needed is 40K

5 units
projected rent (Section 8) at 525/unit or 2625/mo for 31,500/yr. separately metered for heat/electric-city trash/water/sewer is $120/quarterly. Property also has a 2 unit garage in the rear that also needs repairs (undetermined amount at this time) that rent in the area for 100-150/mo.

So I think the questions are: Can you do a hard money rehab loan on a 5 unit easier than on a SFR? How much cash should I expect to put into this. Assuming we're talking 85K for purchase rehab and that I get the price down to 40 so that covers the closing as well.

If I figure the net income at 16,665/year (gross-5% vacancy-10%short term maint-10% long term maint-8% management fee-sewer/water/trash-taxes) then the ARV of the property should be in the 166,000 range. So I'm at 55% LTV on the ARV here from what I can see. Am I in the ballpark on this one or am I way off again?