Need Help Analyzing Investment Property Deal

[Jonathan Bolano]

Hey Everyone,

I need help analyzing what I think is a good deal. Now, I have not looked inside the apartment yet but if pictures prove worthy, then it should not need any work. If there is work needed, it'll be minimal (Under $5k). This is my first time purchasing a 4 Unit multi-family and I want to make sure I have everything thought out. I purhased and flipped my first home (live in flip) and am in my second home today. I do all my own repairs but would be contracting for big jobs.

Here are the details:

Sales Price: $299.9 (working comps)

Total Income: $3.3k (rent) + $325 (other) = $3.7k

Total Expense: $2350 (mortgage) + $400 (Water) + $409.8 (Vac) + $372.5 (Repairs) = $3.5k

Cash Flow: $192.75

Annual Cash Flow: $2.3k

Down Payment: $0 because I'd try to solely do this with HML upfront and then refinance in 6 months with bank. However, I feel it will appraise with bank for exact Sales price. Meaning I'll have bank mortgage for $203k and left with $87k due to 70% rule. Not sure how I'll manage this and this is where I need help (planning and such).

Closing: I'm assuming $10k?

Rehab: Worst case it needs some work $10k but I think I'll keep tenants if they click with me so I'm hoping this drops to $0. I'll see what it looks like at 2pm today. 

ROI: 6% (because of previously mentioned numbers)

NOI: $2542.75

Cap Rate: .9%

DCR: .09 (not sure if if this is a percentage number and should actually be 9%?)

$/Unit: $72.5k

$/SqFt: $103

The list says that the owner annual income is $41,760 and expenses is $9,784.

Thoughts? Did I find something worthwhile? Should I be rethinking this? Any advice would be extremely helpful and appreciated.