Cash on cash return on a seller financed property Houston

[Susan O.]

This is in a 5 cap neighborhood in Houston surrounded by SFRs very nice neighborhood....

It's a $1.1m priced 8 units great area  B+ neighborhood and C- property needing $100k in repairs

$120,000 GSI rental income

-55,000 expenses 

$65,000 Net Operating Income

$900k loan from seller at 6%

Sellers finacning at 6% 900,000 debt = $55,000/ year debt payments

$65,000 NOI - $55,000 Debt service = $10,000 Cashflow is pretty low BUT:

VALUE ADD

But my main goal is to raise the rents, spend $100,000 on property and $200k downpay

The value now is $1.1 mill purchase and after we  put $200k down and $100k on the construction it will be worth $1.35m

So $300k investment to get $200k in value add correct? so it's about a 66% return over 3 years on a 300k investment ($200k downpay coming from a 1031 exchange and $100k in repairs)