How do the numbers look?

[Rhea Wu]

We found a property that has 16 units comprising of 4 units- 2 bedroom apartments, 12 units- 1 bedroom apartments (2nd and 3rd floor); 7 commercial spaces in 1st floor.  
Currently, 2 commercial units are vacant and the 2 bedroom apartment in 2nd floor is allocated for the building manager.

We would like to know your thoughts on the numbers.

Asking Price:  $1,350,000

FINANCING OPTIONS:

1. Seller Financing: 5 percent for 1 year with NO money down then seller will adjusts depending on prime rate

2. Bank: 5 percent for 10 years

Plan: 

1. to renovate the 16 unit apartments so I can raise the rent to $600/unit for 1 bedroom and $800/mo for 2 bedroom unit

2.  Refinance the property with a local bank for 10 years fixed with a 20 year amortization for 5%.

INCOME:

Laundry Income 3/22/16: $82

Rents from 5 commercial spaces (2 units vacant) (6,207/mo)= $ 74,484

Rents from 16 unit apartments ( $ 7,620/mo) = $ 91,440

Late fees: $ 600

TOTAL Income: $166,606

EXPENSES:

1. Bank Service charges ($67/mo) $ 882
2. Filing Fees/Legal Fees ($110) $ 158.5
3. Garbage removal ($110/mo ++) $ 1,573
4. Insurance $ 9,195
5. Licenses and Permits (Occupancy) $ 400
6. Maintenance $ 399
7. Manager Expense $ 7,554
8. Miscellaneous $ 549
9. Pest Control $ 1, 269.15
10. Legal Fees $ 928
11. Realtor $ 725
12. Building Repairs/Water damage $ 50.77
13. Building Repairs others $ 5,246
14. Supplies Office $ 175
15. Taxes Real Estate $ 15, 275.41
16. Utilities PPL electric $ 1,174
17. Utilities Water $ 14,150

TOTAL Expenses: $59,704

NOI without debt service: $ 106,902 ( 8,908.5/mo)

        without 5% vacancy, without 10% Cap Ex

Thanks for your time and experience!