Deal analysis - 5 unit $670k C class in Carolina Beach, NC

[Giora Sela]

Only have experience with Single family and would really appreciate anyone who can share their input!

Build in 1983, 5 unit 2nd row from the beach rented on a long term basis. 

Rents - 3br $1250, 2br $850, 1br $750, $675, $675

Utilities are included and total $3800/year,  not sure if possible to meter separately, but would definitely need to be charged back to the tenants if possible.

* Taxes $3750

* Flood insurance $1000

* Wind & Hail $2,000

* Home owner insurance $500

Owner financing is offered with $240,000 down, 3% fixed over 30 years with a ballon payment after 5 years. listing has been active for over 2 years with original price of $750,000.

5% Vacancy
NET OPERATING INCOME	$37,222
Cash on Cash Return	6.40%
Gross Rent Multiplier	13.30
Debt Service Coverage	1.71
Operating Expense Ratio	23.07%
Acquisition Cap Rate	5.54%
Breakeven Occupancy	65.31%

Rent hasn't increased in years on most units and should be able to move up 100-150$ higher per unit as well as having them cover utilities.

The agent is making it clear that price/down payment is negotiable. Briefly walked the outside of the place and it clearly has some deferred maintenance. I plan on getting a GC to walk through and get some estimates on how much maintenance will cost with the current conditions.

If I rent went up and utilities charged back then the numbers would look like this - 

5% Vacancy
NET OPERATING INCOME	$44,062
Cash on Cash Return	9.22%
Gross Rent Multiplier	11.64
Debt Service Coverage	2.03
Operating Expense Ratio	20.21%
Acquisition Cap Rate	6.56%
Breakeven Occupancy	57.15%

I would expect to lower the asking price by at least the amount of deferred maintenance, but this has been on the market for over 2 years with low inventory in the area, so I can't tell with what numbers this would be a good deal. 

If you can share your thoughts I would greatly appreciate it!