56000/ unit possibly no money out of pocket 23 unit

[Joe Twing]

im thinking about looking at an apartment complex the next town over from me and was wondering what you guys think of it. Its a 23 unit complex with 3 two story buildings. Id say a b class property in great shape built around 1990 and has been updated recently. My gf actually lived there for a little bit and i know the area, the property and the onsite manager pretty well. Now the owner is asking 1.3 million And rents average about 650/month. It is trading at a 9 cap and sounds like the owner may be willing to carry a second. Net operating income is listed at 116500. Im not concerned about making money on it in the first few years cash flow would b acceptable low. What i am concerned about is not getting myself into a situation where im short on funds for capx or even smaller repairs in the short term. I know this is not enough info for a everything but just looking for thoughts. This would b my first multifamily.

[Michael Le]

$650/month on 23-units is $179,400 a year. NOI of $116,500 means there is only 35% operating expenses. Doesn't seem likely but you might know better. Make sure to get the financials and confirm.