Deal or no deal on this multi family?

[Brock Agamaite]

Currently listed at $159,900

6 units bringing in $3,200/month in rents

Taxes are $3,092 and Insurance is approx $1,200. Tenants pay electric and heat and the property has a private well for water.

I would self manage.

Garbage(dumpster on site) and city sewer is $395/mo average

There has been zero vacancy in the last 10 years.

I would offer $150,000 cash sourced from a private money lender at a zero interest rate. Would JV and my partner has the cash. I am a licensed Realtor so would earn 2.1% commission on the buying side.

The building was built in 1900 and needs plenty of updating. I can leave as is and keep getting $3,200/mo in rent or rehab the units one at a time and get $3,800 in rents when they are all complete. Tenants are all employees at a local mega dairy farm and the community its located in is relatively low income and rural.

Lets hear your thoughts on whether or not you would pursue making an offer.

[Charles Carillo]

@Brock Agamaite

If there has been not a vacancy in 10 years, the rents are probably (way) under market. Not saying to jack the rents but I bet you can get higher if you rehab the units than just $600/month. On the other hand, a rural location cuts down on the potential renters and if the rent goes up a little you might not be able to re-rent easily. Most tenants having the same employer is risky if that company closes.