negotiations on a 4 unit multifamily in Jacksonville, fl

[Aaron Thivierge]

Good morning, BP. 
After closing last August on my 1st investment property, I have closed on another SFH rental. Both of these properties are doing great. I find myself now in discussion with an older owner of a 4 plex in a B+ area of Jacksonville, Florida. What is your take on these numbers?

Numbers: 

Purchase price $320,000
Closing costs ( buyer is paying all of closing costs w/ a $2500 credit from seller): $7500
Rents ( 2 are under market value, 2 are at market value): $750, $850, $1000, $1100: total: $3700/mo
Downpayment: (25%) $80,000
P/I: $1800/ month
Taxes: $550
Insurance:  $267/ mo
Garbage:  $140/ mo
Water:  $440/ mo
maintenance (5%): $185/mo
vacancy ( although none have been vacant in 10 years): 5%: $185/ month
Expenses total: $3567

**I know I can raise two rents from $750 to $850 and $850-$900 ( adding $150/month in revenue)
** My goal is to do SOMETHING w/ the water bill : $440/ month that the owner is paying seems ridiculously high to me.  I feel like I can cut that number in 1/2 to decrease expenses. 

Thoughts on this deal?