6 Unit Analysis help

[Matt Kauffman]

Hey BP gang, I'm not very good at being active on BP, and I apologize for that. But I hope I can get a little help analyzing a deal I'm looking at. I'll try to do better in the future. 

6 Unit - Nice residential area down the street from another 6 unit, next to a 4 unit and diagonally from another 4. Everything thing else there is SFH in the immediate area.

Asking $249900 @ an 8% Cap rate - Owner financing might be possible. 

Make up: 2bd 1ba townhouse style with full basements. Roughly 1100 sqft per unit with W/D hookups and single car garage. Large bedrooms. Figure cap ex immediately needed would be about $3000/unit, but not all units will get attention right away. Not all units have been inspected yet. 

Financials: All but one unit occupied. vacant unit is being renovated.

Rent: averages $570, newly renovated one once finished will rent for $640 - new rents should be $650-675/unit. Upside is good for rent increases.

Taxes: $4357

Insurance: $3600/yr, I think that's way high for it. $2000 more likely.

Maintenance: $1800/yr - $300/door

Water: $1800/yr - water meters can be added

Sewer: $1908/yr

Trash: $960/yr

Lawn care: $1800/yr

Cap Ex savings: $4000/y or $666/unit - these are my numbers, not theirs. That's 10% of rents.

Prop Mgmt: $5100/yr - my numbers, not theirs. That's figured at 12.5% of rents
NOI without PM (I'll be managing for now) - $17604

Valuation @ 8% is $220,000

Cash flow today would be $50/unit with 25% down if i don't do anything. Stabilized cash flow will be $181/unit. Stabilized value would be $345,000. Hoping a refinance will be in order. COC stabilized is 16% after some cap ex for renovations. Without it, it's 22%.

Am I missing anything and where would you offer at to start and then how high would you go?