48 unit Apt / $1.6M Deal

[Account Closed]

BP, 

New investor here and an opportunity has come across my plate and I need your input.  Here are the details.

Purchase Price: $1.6m w/20% down 

48 Units, 90% Occupied. A mix of 1/br & 2br. Old management charging less than market price for each Apartment.

Current Monthly Income: $21,825

Currently Monthly expenses: $20,094 (includes water, sewer, lawn, electrical, maintenance, legal, CapEx, PITI etc)

Current Cash Flow: $1,731

What to expect once rents increased & laundry added: Monthly Rental Income: $25,925 - Expenses $20,094 = $5831 Cash Flow

The numbers above show the current state of affairs however there is so much meat left on the bone. The units were built in '68 and other than carpet/flooring have yet to be updated. Upgrades will lower our monthly expenses and we will be raising rents to match the area. There is no laundry on site which we will change. The old laundry rooms are there, just need units. There are also storage several storage units on site which can be rented out. Lastly, on the 4.5 Acres it sits on there is room to build an additional 24 units brings the total to 72. The local county building/zoning/planning departments have already given the thumbs up. 

Before partnering with these investors I want to make sure it's a deal worth getting into. This would be my first investment and it's bigger than I initially thought I would get into as far as a first property goes. The other investors are seasoned and would be doing the majority of the heavy lifting. If the numbers are right I see this as being an incredible learning opportunity. The question remains, is this a good deal to partner on and is it wise for me to start here rather than a smaller MF. 

Thank you in advance for your input.