Is this a good deal?

[Stephen Jones]

Happy New Year to everyone!

I'm hoping to get some insight on whether this is a good deal or not? Any help, suggestions or feedback would be greatly appreciated. The breakdown on my potential deal is as follows..

12- 2 bedroom 1 bath units

washer/dryer hookups

1000 sq ft.

2 buildings total- each have 6 units a piece

Property was built in 2000 so fairly newer

Located on the outskirts of St. Louis in a decent community with a great school system. Total of 15,000 people in town.  

Purchase price -630,000$ - Paying 15% down

Rent Roll- 625$ per unit- 90,000$ yearly

Owner pays for Lawn Care and Trash only- 4200$ per year

Taxes- 13,500$ yearly

Insurance- 6000-7000$ yearly

Obviously would have to factor in a mortgage payment.

Windows, air conditioners, roofs all in great shape.

Any advice would be great! Thanks!

[John Collins]

The raw numbers look great. However, a few questions

1. Is any rehab needed with floors, counters, kitchens, bathrooms etc? 

2. Has the property had issues in the past? Anything recurring? Plumbing, foundation, settling, frozen pipes etc?

3. What has been the vacancy rate of the apartments leading up to this? Not always high demand for only 1 bath places in nicer school type places. 

Just extra questions to check up so a post-purchase cost doesn't creep up on you.