Need help analyzing deal

[Tom Rottler]

I have an opportunity for a small mixed residential/commercial property in a college town. Two apartments up on annual lease and 1 pizza franchise downstairs on a 5 year NNN lease. 5 year old property. Need some BP eyes on it. Would you invest if you saw these numbers? Low risk, low expense, cash flow not great, long term 25% IRR, 7% cap rate.

$700,000 purchase, 100% financed at 4%

$56,473 rents

4% property management fee

$2500 property tax

$1000 insurance

new building, low expenses

https://www.calculator.net/rental-property-calculator.html?cprice=700000&cuseloan=yes&cdownpayment=0&cinterest=4&cloanterm=20&cothercost=5000&cneedrepair=no&crepaircost=10000&cafterrepairvalue=150000&ctax=2804&ctaxincrease=3&cinsurance=1000&cinsuranceincrease=3&choa=0&choaincrease=3&cmaintenance=2000&cmaintenanceincrease=3&cother=200&cotherincrease=3&crent=4973&crentincrease=0&cotherincome=0&cotherincomeincrease=0&cvacancy=2&cmanagement=4&cknowsellprice=no&cappreciation=2&csellprice=200000&cholding=20&csellcost=8&printit=1&ctype=

[Jai Reddy]

All numbers look good to me. Especially, the low cost of insurance (only $1000/year) and the 4% interest rate for a 100% finance. Is the loan amortized over 20 years, and is it fixed for 5 years?

Good and cheap pizza close to a college is always good in my opinion.