Would You Do This Deal? Napkin Math

[John Matthew Johnston]

Deal

5 plex- Four 2-1 and One 1-1

Current rents 4650

Possible to raise to 4800-5000

Asking price 475,000, offer of 450,000 accepted.

Place is in excellent condition and well maintained and fully rented.

New roof

All new bathrooms

All new Kitchens

Awesome 5 plex in awesome School district 10 minutes from my house.

Loan details

25% down at 112,500

20 year with 5 year arm @ 6.34

PITI- 3363

Repair -230

Capex- 230

Vacancy- 460

Lawn Service/ Snow removal- 160

Cash flow - 157/ Month

Way lower CF than I’m use to but with principal pay down, appreciation and possibly of rates coming down and me refinancing also could probably increase rents to 4700-5000.

Any thoughts?