Help me analyze this 6 unit deal

[Stephen Jones]

BP,

I have a 6 unit deal on the table that I would like to get some feedback on if possible. The owner is wanting a little more than what I wanted to pay but I have 28 units within a block of these 6 so it’s extremely hard to pass on considering how convenient these are. Here is the deal breakdown-

Location- Suburb in Illinois right outside of St. Louis (about 20 miles)- population 12,000

Purchase Price- 300,000

Yearly Rent Roll- 43,000$

Yearly expenses-

Trash- 750

Water- 1500

Mortgage payment w/ taxes + Ins included- 22,800.

All 1BD 1BTH (650 sq ft)

All units completely remodeled

Washer/Dryer hookups in unit

Roof is old, will need replaced in the coming years

- it’s a pretty easy breakdown, I’m just not sure I want to pay that purchase price that she’s asking, but it’s hard to pass up due to what I explained. Any feedback would be extremely helpful! Let me know if there are any questions! Thanks.

[Francis Louis Vogel Jr]

Stephen,
Some questions you did not present were.
1] Deferred maintenance costs
2] Is the sales price consistent with area sales comps
3] Are the rents at market rates
4] Quality of tenant leases, age of lease, tenant income and lease agreements

When your trying to get financing overpaying for an investment property will be problematic.

Good luck, great post.