Need Help Figuring Out If These Number Look Good

[Raynold Owusu]

Hello Bigger Pockets Family,

Im trying to get out of this analysis paralysis state I'm in, but I need to make sure my partners and I are looking at a good deal. I need help and the wisdom of my bigger pocket family on this one. So my partners and I are not looking at purchase bad deal. The property is a three story brick building 25 ft x 60 ft and consists of 6 total units (5 free market residential apartments along with a ground floor commercial space). The property is located in Brooklyn, New York.

•  4 of the residential units are vacant and not renovated.
•  1 of the residential units is a renovated duplex unit that is paying $2,600/month.
•  The retail store has a lease that expires in 4 years and is paying ~$2,000/month.
The non-renovated residential units can be converted to 3 bedroom/2 bath units that would generate approximately $3,200/month.
•  After renovation the property can generate gross revenue of ~$208,000/year.
•  After the retail lease expiration, the building can generate gross revenue of ~$233,000/year.
•  With the upside potential in the retail rent the property can go from a 5.7% Cap to a 6.5% Cap just by waiting out the impending retail lease expiration.

Projected Revenue Unit	Est. Unit SF	Bedrooms/Baths	Monthly Rent	Annual Rent
Retail	750	$ 1,900	$ 22,800 Lease expires in 4 years
1 - Duplex	750	Duplex	$ 2,600	$ 31,200 Gut renovated with private backyard
2F	750	3BR/2Bath	$ 3,200	$ 38,400 *
2R	750	3BR/2Bath	$ 3,200	$ 38,400 *
3F	750	3BR/2Bath	$ 3,200	$ 38,400 *
3R	750	3BR/2Bath	$ 3,200	$ 38,400 *
Total	4,500	$ 17,300	$ 207,600

*Vacant - rent project after renovation

REVENUE:
Gross Monthly Income	$ 17,300
Gross Annual Income	$ 207,600
EXPENSES:
Real Estate Taxes	$ 8,394
Gas/ Heat	tenants
Electric	$ 1,679
Insurance	$ 3,375
Water/Sewer	$ 2,700
Maintenance	3%	$ 6,228
Management/Vacancy	3%	$ 6,228
Total:	$ 28,604
Gross Annual Income:	$ 207,600
Less Expenses:	$ 28,604
Net Operating Income:	$ 178,996

Any and all input is greatly appreciated, Thank you in advance.