Curious about opinions regarding my upcoming deal

[Guy Azta]

Hello all,

I'm not a very active member here, which I intend on changing this year. I shared last year about my plan to sell 3 of my houses and exchange them into multi families. I have been looking to get into the apartment buildings world and now got my first deal under contract. It's part of a 1031, which doesn't really matter, but I'm very curious what other investors may thing about the underlying deal:

- 12 unit building in Cincinnati, OH

- Almost 100 years old ;-)

- Been renovated by seller. After extensive inspections it appears to be in pretty good condition. some units were fully rehabbed. some will need some rehab upon tenants move-out. I will not have to put in significant money in upfront renovations (expectation is at or under $5K)

- It was listed at 10% cap, but after factoring in new taxes & insurance, it is now at 9%

- Most units are efficiencies. The building is located in a decent part of town. It caters to low income tenants. Seems pretty stable with decent tenants

- Price is around $240K

- The cash flow calculated would be around $8K annually. It could be higher if taxes don't go up as much, as well as other factors, so could end up being $10K-11K annually, but for safety, let's stick to $8K. I will be taking a loan

- I'm going to put approx $100K in down payment

- The cash on cash return is now standing at 8%. The return on equity, factoring in depreciation, equity build and taxes, is around 20%

I have until tomorrow Friday 2/10 to either pull out or go for it. I haven't been able to see any deals that are significantly better, esp considering the building is already renovated.

Would love to hear what people think and if it's an ok deal or I should run for the hills...

Thanks

Guy