Question on Apartment Complex..

[Scott R.]

Going to look at a complex tomorrow.. had a few questions and wanted to run some stuff by you experienced investors. I am unexperienced.. yet educated. Own 1 SFR for a year now.. recently bought another thats being rehabbed. Both will be rented. Although I have been researching this stuff for months, helped a friend with a 80 unit he bought (i actually lived on site and did management) and I THINK im ready to persue my own deal. Came across a deal or so i think..
OK side of town.. should be able to rent easily.

32 Unit
High occupancy currently
Purchase Price $515,000.. hopefully $500,000.
rents average $400 per unit.
$12,800/mo. fully occupied..
$11500/mo w/ 10% Vacancy
taxes $8250/yr = 700/mo
Insurance $4500/yr = 375/mo (seems low, info from owner)

BELIEVE (keyword) the following loan can be obtained
$20,000 dn
remainder carried at 12%
which would put me right at $5,000/mo with purchase price of $500,000.

$5000, 700, 375 = $6075/mo piti
based on the 11500 mo with 10% vacancy that leaves me roughly
$5,500/mo for maintance and such..
will be living onsite doing management myself.. shouldnt be an expense there except my own time.

SHOULD be a decent deal would you agree!?
Basically I DO NOT have $50,000 in the bank for repairs if such were needed.. but with the $5,000 a month for such I believe it should be do able.. lots of plumming and AC updates.. seems to be in pretty good condition.

PLEASE tear this apart.. shoot it down if it needs to be done.. wanna hear what you guys think.
THANK YOU!