New London, CT near Sub Base Multiplex Analysis

[Mia Edgar]

Hi,

I'm new to biggerpockets and have been learning and absorbing as much as I can about multi-plex deals which is my goal. I will be moving to New London CT in a couple of months and have been looking for future opportunities there. Ultimate goal is to do BRRR but for now, with my full time job am looking into buying multi-family and rehabbing a little, usually new paint, simple fixes.

I ran an analysis on this multi-plex a couple of days ago with decent cash flow.  Wondering what people think about this deal?  Has been on the market since August.  I put in the asking price (239,000) but would realistically shoot for 70-75% about 167-170,000.  These are the numbers:

5 units, fully rented with long term tenants (per loopnet)

Repair costs:

$5,000

Monthly Income: $2875

Monthly Expenses: $2351.34

Cash Flow: $523

Cash on Cash ROI: 19.7%

NOI: $18,607 ($20,700 per loopnet)

Accounted for 11% vacancies, 3% growth, 5% repairs, $326 for property taxes monthly, $250 monthly insurance, 10% property management

Monthly rents currently are a little low compared to area, $575/unit/month but I think with some new paint and simple fixes we could increase that to market value around $700.  All of these calculations are with current rent and per loopnet all five units are occupied.

Thanks for any input!

Mia