What are your thoughts about this potential deal?

[Dave House]

I'm looking at buying the apartment building I'm currently renting in & potentially the building next door with seller (same seller for both buildings) holding note @ 7.5%. The 2 multi family buildings fit together perfectly on side by side lots as if they're one complex with a courtyard. I have a 762 FICO and can put up to 25% down on both buildings.

Some instant appreciation may be attained by updating the units and a Community Redevelopment Assoc has begun improving the nearby (less tan 1/4 mile) beach access road to attract more businesses & beach goers, which hopefully will also lead to added natural appreciation in time, once completed.

So, am I doing these numbers the right way and what are your thoughts about this potential deal(s)? Thanks!

BUILDING #1
Built 1969
Current Owner Purchased in 1977 for $142,500
10 apartments; Two = 2BR/2BA, Eight = 1BR/1BA

INCOME APPROACH
$67,500 PGI x .50 = $33,750 NOI / 0.075 (Min 7.5% CAP Rate Desired) =
$450,000 Estimated Value

CASH on CASH RETURNS
$67,500 PGI x .50 = $33,750 NOI - $30,206.04 Debt Services =
$3,543.96 Before Tax Cash Flow / $90,000 Down Payment 20% x MAO =
0.039 Cash on Cash Returns

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BUILDING #2
Built 1973
Current Owner Purchased in 1989 for $157,000
Legal 3 family; Two = 2BR/2BA & One = 3BR/2BA (Currently being rented as three 2 BR's + 1 Effic)

INCOME APPROACH
$31,800 PGI x .50 = $15,900 NOI / 0.075 (Min 7.5% Cap Rate Desired) =
$212,000 Estimated Value

CASH on CASH RETURNS
$31,800 PGI x .50 = $15,900 NOI - $14,230.44 Debt Services =
$1,669.56 BTCF / $42,400.00 Down Payment =
0.039 Cash on Cash Returns

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BUILDING #1 + BUILDING #2
INCOME APPROACH
$99,300 PGI x 0.50 = $49,650 NOI / 0.075 (Min 7.5% Cap Rate Desired) =
$662,000 Estimated Value
vs.
$721,210 Tax Assessed Value

CASH on CASH RETURNS
$99,300 PGI x 0.50 = $49,650 NOI - $44,436.48 Debt Services = $5,213.52 BTCF / $132,400.00 Down Payment of 20% =
0.039 Cash on Cash Returns