30 unit building analysis

[Matthew T.]

I'm trying to jump into larger multifamily and this will be my first real deal after mostly having SFHs and small multi-families. The seller has 3 buildings for sale, each with 10 units. He wants to sell all 3 at the same time, but has said he will entertain offers to buy 1 building a year for 3 years, which is what I offered as that is what I can afford to do. All 3 buildings are identical with 10 units. 6 one bedrooms and 4 two bedrooms. Asking price is $400K each or $1.2 million for all 3. They are not listed for sale anywhere and he contacted me to sell them. The seller bought them not long ago for about $750K and has performed renovations on the buildings. I will enter the finances for the first building, but the other 2 are very similar. 

The total income $68,000 (including rent, laundry, etc)

Vacancy: $5,440 (8%)

These expenses are the "real" numbers given to me. I know I can get pest control costs down substantially through who I use.

Water $3,000, Pest Control $2,600, Trash $540, Gas $3,500, Electricity $3,500, Insurance $3,600, Taxes $5,000.

I will have a loan to purchase the properties. So 20% down and about 5.5% interest over 20 years.

I will self manage and perform my own maintenance. That said, probably put $500/month maintenance per unit.

The buildings have been well maintained and maybe 1/3 of the units have been completely remodeled in the last 3 years. Roofs are all less than 5 years old. Maybe I can get some help on calculating Capex, that's something I struggle with calculating.

Buildings are in a mid-sized midwestern town that is growing. The buildings are in an excellent location on a main 4 lane street right behind a large grocery store in a nicer part of town.

What are your thoughts/concerns on the finances and price?

Thanks,