Mixed Use Investment Property - Feedback

[Matthew Passero]

Hi everyone - looking for feedback on the below deal.  All numbers & due diligence has not been completed but this is all information that I have.

Mixed Use - 2 retail (Restaurant / Hair Salon), 4 Apartments (3 1BRs / 1 2BR)

Parking: 4 spots for apartments

Location: Main street, near center of town, plenty of municipal parking nearby

Roll: Restaurant -  $4,745 w/ escalations (14 years left), Salon - $2,900 w/ escalations (9 years left)

Apartments all rent at $1,200 per month with some room for growth.  2 units have longer term tenants. 

Expenses: Taxes - $21,213, Insurance- $3,000, Utilities - $1,100, Alarm - $1,000, Smoke & Carbon - $700, PSEG Worry Free - $1,100

Mgmt Fee - estimated at 4%, vacancy estimated at 5% for residential, property maintenance estimated at $5,000 per year, 3% for reserves.

Would love your input / feedback.  Listed at a 6.47% cap rate but that excludes all estimated expenses after the PSEG Worry Free. 

At this point that is all the information I have.

What would you offer?  What would you value this property at?