Thoughts on this 'deal

[Steve Vize]

Hey BP community,

I have been watching a few deals in a college town I live near. The Cap rate for these places are passable but not stellar. 

Offering Price: $860,000

Projected NOI: $50,750.25

Estimated CAP Rate: 6%

Number of Buildings: 1

Number of Units: 8

Building Size: 8,402 sq. ft.

Land: 17,331 sq. ft.

Year Built: 1996

2 BR Unit Size: 766 sq. ft.

3 BR Unit Size: 1,228 sq. ft.

4 BR Unit Size: 1,441 sq. ft.

Projected Income:

Rental Income: $93,960

Concessions: ($2073.02)

Fee Income: (2016) $7868.42

Total Income $99,755.40

Property Taxes:$11,062.00

Insurance: $3463.42

Repairs/ Maint. $15,642.55

Utilities & Cable: $1,854.50

Misc. Expenses: $2,294.76

HOA/ Management: $8,267.40

Total Expenses: $49,005.15

Net Operating Income: $50,750.25

Rent Roll

MONTHLY

TOTAL:

$7830

The Issue I am asking about is that there is a 600 Unit apartment planned for a block away. This location is on the edge of the town, but within reasonable driving distance and has a university bus stop.

I do not know why there were $15000 in maintenance last year, but i will find out.

I have some major reservations since there are a few uncertainties about this one, but I was hoping to get the opinions of more experienced investors.

What concerns should i be aware of?

Is a 6% cap in the midwest too low in your opinion?

Are there questions i need to be asking that i don't have covered?

thanks for any help

Steve