Need Help Knowing If This Is A Good Purchase? ( MULTIFAMILY)

[Marshall Zakarian]

I've been proposed a Class B multifamily building in a desirable area with low inventory. Below are the numbers.

9 Units( all one bedrooms ) ( 625sqft )

2 units= $880, 2 units= $800, 2 units= $725, 1 unit= $845, 1 unit= $670, 1 unit= $625.

Revenue: $74,700

Net: $ 55,000

There is no property management. Roof is 20 years old and furnace is about 35 years old.

Currently the rent is under average market rent. There is a few listings currently right now that are 500sqft for $925 in a less desirable street.

I'm pretty certain that I can get $1,000/month after I remodel the bathrooms, change the floors to hardwood, remodel the kitchens and new paint. This would total roughly about $100,000.

The seller first wanted $800,000 and after a month he called me said he will take $700,000.

The seller is motivated to sell and I'm pretty certain I can grab it for $600,000.

What do you guys think?? THANKS FOR THE FEEDBACK!