MF - good deal or not? Help.

[Daniel Jenkins]

Hi everyone - I’m looking to break into MF investing and have an off market opportunity that I’m trying to evaluate. I’m mid 30’s and trying to replace my salary with income so income is important.

Here is the deal:

- Strong suburb on outskirts of Charlotte

- 12 units all 2 bed 1 bath

- B/C class area and building

- current Rents $600 per unit $86,400 per year

- Market rent: ~$750 per unit $108,000 per year

- No rehab needed except for rolling update as tenants vacate

- 100% leased, many been there for a long time

- Parking

- Residential neighborhood

- Roof and structure all in decent condition

Asking price $1M but might be able to get it for slightly under that.

What are current cap rates on fringe market multifamily deals like this?

If you were in the early stages of your investing career and wanting to grow quickly, how we you look at this deal? Any other things I should be considering/factoring in?

Thanks for any guidance.