Help Me Analyze a Apartment/Motel Opportunity

[Dan Cho]

So I recently came across a apartment/motel opportunity in upstate NY. So their are 2 properties, one is basically a building with 3 apartments inside and the other building is a 9 unit motel. So basically here are the details below:

Asking Price: $575,000

2014 Revenue: $71,000

2015 Revenue: $100,000

Jan-June 2016: $55,000

2015 Laundry Cleaning Service: $2,500

2014 Laundry Cleaning Service: $1,680

Electric 2015: $5,641 yearly

Water 2015: $990 yearly

Insurance 2015: $2800 yearly

2 Separate Buildings: 1 has 9 motel room and 1 has 3 apartments

-Owner claims that 1 apartment rented for $850 and uses 2 apartments for family. Rent on this unit is below market and I believe rents on apartments can be $900-$1,000. Also I won't be living here so I can definitely rent these units out. Motel rooms currently has 3 people living there long term and charges $250 weekly.

-Owner claims about 90% occupancy thus doesn't advertise on any of the major booking sites other than google.

-Owner claims that room cleaning, maintenance, is performed by one of the tenants who he pays about $70 on average weekly.

-Major renovations have been completed since purchase in 2012, new roof, new HVAC, new bathrooms, new pluming, new insulation, new 32'' tv, etc done on both properties.

-Owner claims to be selling due to going on to bigger project hotel up about an hour from current location.

Did my own analysis on the project and seems like I can get 13%-20% cash on cash roi, depending on how much I put for down payment. Love to get your opinion on the matter. Thank You.