4 family which is truly only a 3: first deal

[Paul Reynolds]

Hey everybody.

I recently made an offer (my first ever) on an investment property.  it's technically a 4 family (4 one bedrooms) but it's only zoned for 3 families. So the current owner has all 4 units occupied but every time the C of O is due he has to vacate the one unit so that it can be inspected as a 3 family. He's had the place 10 years so he's already done it a handful of times. At first I didn't think it was a big deal but as the deal progresses I'm a little nervous about it. What do you think?

Also, here are the stats on the house:

Rental Income = 2300/mo

Gas/Elec (included in rent) = -200/mo

taxes = -150/mo

loan = -200/mo

insurance = -70/mo

capex = -230/mo

vacancy = -230/mo

maintenance = - 220/mo

cash flow = $1000/mo (with no prop management, at least initially)

However,  if I lose that 4th OR I have to keep that 4th unit unoccupied in order to wait for the next C of O the numbers will not be good.
So again, what do you think?
Thanks!