I've been waiting for this property to come up for sale. It's directly across the street from me so it would be perfect for my first mf property. Here are the numbers I know so far:

Rents
4 units all currently occupied on one year leases
- #1: 1/1 $995 monthly
- #2: 1/1 $995 monthly
- #3: 1/1 $995 monthly
- #4: 2/1 $1,100 monthly
- Gross rents: $4,085 monthly

Expenses
- $12,070 taxes annually
- $350 monthly insurance (my estimate, they have liability only right now)
- $175 monthly landscaping
- $120 water (electrical on separate meters, tenant pays)
- Total expenses: $1,651 monthly

NOI around $2,434 before vacancy, maintenance, and management (although i would likely self-manage these)

Property needs about $50K in other repairs and udpates from what I can see. Haven't been able to walk each unit though. Roof is about 5 years old. Plumbing repairs done recently. Electrical as well but needs updating. Washer and dryer connections in each unit. Window units, no central air.

Rents are on par with the area but updated units are going for close about $1,200 for 1/1 and $1,350 for 2/1. It's a great area within walking distance (5 minutes) to shopping, grocery, coffee shops, and historic neighborhood, and about 5 minute drive to downtown.

They are asking $695K for it. (Owner passed. Kids are selling. Not particularly interested in seller financing it but will consider). I'm thinking of offering $450K (cash and bank loan), make improvements as leases end, and then refi and increase rents as necessary. What do you think?

The other motivating factor here (for me) is that I want to move my mom into one of the units so she's close by. Separate question for the lenders out there: Could this qualify as a second home for FHA based on her occupying one unit? Someone suggested this.

I appreciate any input on this. Thank you!