Advise on a multiunit for Sale

[Marcus House]

Hello everyone. For 10+ years I have been total focused on single family homes for rentals and considering to step my toe into the multifamily space (all as an out-of-state owner). This property is FSBO and the details below was provided by the owner. How to evaluate this and more importantly what is fair offer on this? I do have a manager that has an annual budget for managing all of my SFH currently so his cost would go up to manage this for me as well.

ZONED COMMERCIAL

$9234YEARLY BASIC EXPENSES ….$770 MONTHLY

$417FIRE INSURANCE…….$35 MONTH

$4080 YEAR WATER/SEWER….$340 MONTH

$1800 YEAR ELECTRIC COST…$150 MONTH1st fl, halls, basement, storage area ground floor of owner

$1200 YEAR TRASH REMOVAL…..$100 MONTH

$100 YEAR LICENSE FEE….$8.00 MONTH

$1637 YEAR TAXES……$137 MONTH

BASIC MANDATORY SCHEDULED EXPENSES

UPSIDE POTENTIAL OVER THE NEXT YEARS FOR MORE INCOME AND HIGHER RENT COLLECTIONS.

1st floor $650 monthly,2nd floor front $425 monthly,3rd floor front $475 monthly, 2nd floor rear $400 monthly, 3rd rear $400 monthly when repaired.

$2350 MONTHLY INCOME….$28,200 YEARLY…..

IS RETIRING FROM THIS BUSINESS AND SPENT MANY A TIME AND DAY DOING REPAIRS, MAINTENANCE, AND KEEPING THE PREMISES IMPROVED AND REPAIRED OVER ALL THESE 30 YEARS.

EACH OF THE 5 (FIVE) APARTMENTS HAVE 2 BR, LR, KIT, BATH ALONG WITH OWN FURNACE AND OWN HOT WATER HEATER PLUS REFRIGERATOR AND STOVE

3 FURNACES REPAIRED WITH NEW PARTS….EARLY 2018

EXTERIOR PAINTING………JULY 2018

NEW ROOF......SINCE THE END OF 2017