Analyzing the deal: 55 Unit complex in MA

[Samantha Magina]

I've done my homework and I can now analyze a small multi-family (2-4 units) in a few minutes. I'm working on getting my first deal. That said I'm quite enjoying the BP podcasts where folks just jumped head long into partnerships and/ or syndications for larger apartment complexes. I had this property catch my eye while I was perusing the MLS for fun.

This property is a 55 Unit in Foxboro, MA with a mix of 1, 2  units, 1 and 2 BR units for for between $1645 and $2400, according to rental information available online, rent.com indicates 8 units are currently vacant. For the sake of my analysis I'm going to assume all units are $1700/ month so that it is conservative. 

List Price: $11,000,000

RE Taxes: $89,582

Gross Income listed at $38,100 so lets assume that is not correct information. 

My assumptions:

At least 1 on site manager and 1 FT or 2 P/T / On-call maintenance staff, with outsourcing of lawn care, snow removal and possibly items such as unit turnover (paint, flooring).

I (and lots of my closest friends, business partners) fund 10% of this deal and I get a loan @7% for the remaining 90%. 

Income (@ current occupancy of 85%) =                             $79,475

Expenses:

2 FT employees ($20/ hour*320) =                                         $6,400

Mortgage =                                                                               $65,865

RE taxes =                                                                                   $7,465

Monthly Net Income before R&M, Insurance, CapEx and Vacancy . = $-255

I don't know how to properly estimate R&M, Insurance, CapEx and Vacancy but just the expenses above indicate that the 11 million price tag is far too high for my taste.

Who want's to explain to me what I am missing to analyze this deal?