6 Unit property analysis = 58K

[Nick Rose]

I'm hoping to get some input on a 6 unit multi. 

6 Units, 58K asking price

Gross monthly income = ~2500-2800, tenants pay gas and electric.

Separate HVAC, separate electric meters.  1 large water heater for all.  8 year old pitched roof.  Certified by City.

The property is in a decent area.  Incomes are not especially high in the area, but definitely not a war zone.  Medium sized town with plenty of property management companies.  The numbers look great, however I have some issues:

1.  The interior is expected for an older home.  Beautiful stained wood trim, wood floors and each unit has claw foot tubs.  Subpar windows and the big issue is the exterior siding is wood and has been extremely neglected.  Although they painted recently, there is a lot of rot and I can see some holes thru the wood siding.  This is a HUGE home and I'm afraid of what I would find underneath the siding.  

2. There are many furnaces, and I'm being told they are over 20 years old.

3.  The seller seems very aloof.  It took over a week for them to reply and they have no idea what the rents are.  They recently hired a management company 2-1/2 months ago.  I can determine market rents and what they are currently getting.  My issue is, he has no idea what the tenant qualifications are.  Told me via email "tenants are not rich...probably all have bad credit and work for min wage."

4.  The seller will finance with a 5 year balloon, however then what?   I could set aside money to pay it off or try to get bank financing after 5 years.  From what I have found thus far, not many commercial lenders care to finance such a small property.  I'm trying to make sure I have a sound exit plan.

Any input is appreciated.  I do have cash for this property however I'd rather leverage as much as possible when possible.  This is not my first rental, but it is my first multi.