Newbie needs deal analysis help on multiple 4-plex opportunity

[Michael Yin]

Hello everyone, I'm working on analyzing an opportunity to purchase several quadruplexes on the same street. This is my initiation into multi-family, so I'm operating from knowledge gained by reading several books (mainly Dave Lindahl). I need assistance ensuring I'm properly considering all the numbers to determine if it's a deal vs a dog, and then I also have a question about how to finance several 4plex that are separately deeded (but all owned by same seller). Your feedback is greatly appreciated. Here are my numbers... where am I off?

# of Units32

Rent per Unit$485

Gross Rents$186,240

Other Income$0

Gross Potential Income (GPI)$186,240

Vacancies Assume 10% vacancy rate $18,624

Effective Gross Income (EGI) $167,616

# of 4-Plex8

Price/4-Plex$120,000

Sales Price$960,000

Acquisition Cost Assume 20% down pmt + 5% other$240,000

Property ValueNOI/(Desired Cap Rate)$931,200

Operating ExpensesRule of thumb is 50% of Gross Rents (assuming tenants pay utilities) $83,808

Capital ExpensesUnknown (owner says 0$)$0

Net Operating Income (NOI)EGI - Expenses$83,808

Debt Services$75,396

TaxesAssume 1.25% of property sale price $12,000

Insurance Assume 1% of property sale price $9,600

Net Cash Flow-$13,188

Debt Coverage RationNOI/(Debt Services) 1.11

Capitalization Rate (Cap Rate)NOI/(Sales Price) 9%

Gross Rent Multiplier (GRM) 5

Cash-on-Cash Return (CoC)(Net Cash Flow)/(Acquisition Cost) -5%