Give me your Opinion on this MF purchase! Good, Bad, Ugly...

[Trent Barga]

3x 4 unit buildings. Yearly rent is $93,900. Sellers want $1 million. They don't have P/Ls etc. They inherited from father and these properties are slum but in a great town where a SFH 2/1 800 sqft rents for $1100. I'm assuming $32,400 in expenses with a NOI of $61,500. So rents are low and could get up to $900/unit once some of the properties are updated/rehabbed. Could get average rent of $750 as is.

$1,000,000 PP; NOI=$61,500; 80%LTV 5.5%; DSCR = 1.13 (with a 5% reserve for vacancy)

- Issue would be getting a loan because it's below the 1.25 threshold; Thought about going to $1.1 Million and get $100,000 seller credit for repairs and up the rent within 1/yr

Within 1year assuming 90% occupancy:

NOI = $84,240 with an assumed value of $1.7 Million with a 5% cap rate; Generates just under $24,000 net cash flow (brings dscr to 1.55)

Ideal price I would like to pay is $750k but I don't believe that is happening.