Good investment? 6 buildings 40 (2-3 bed) units total

[Bobby Gill]

Hi needed your help with the analysis of this deal.

Looking at a 6 unit multifamily building. It’s off market. The seller has 6 buildings...4 buildings with 6 units and 2 buildings with 8 units. All for sale. A mix of 2 and 3 bed each building. Year long leases. Renters supply the appliances, which they would take when they move out.

Roof 3 years. Most windows replaced last year. Units are in good shape. Would need to install appliances in each unit when tenant leaves.

I’m analyzing one building:

Ask 125K/unit (750,000 for one of the 6 unit building).

Realtor said could get it for $650K

ARV would be 150K/unit (900K building)

Each unit has separate entrance and metered separately. City will allow the units to be converted to single family to be sold separately.

Current Rents for 6 unit building: $5975

12 maintenance: $717/month

6% vacancy: $358

8% management: $478

2% other: 120/month

Insurance 234/month

Tax: 957/month

ARV rent: $8,400

Thought?