Multi family deal evaluation help

[James Derri]

Hi All,

I’m considering buying my first 2 multi family rental unit. As a beginner I prefer to buy rental units within 20 miles from my house since I prefer to manage it myself for now and I'm quite handy as well:).

I saw 2 legal multifamily rental unit on the main road, good location in Nassau county long island NY currently vacant. Listed at $650K with property tax of $13K but I think I can get it at $600K.

I plan to put 20% down and financed $480K @ 5% interest. My monthly/Yearly Analysis are Gross rent of $5K/60K, Operating expense(details below)$4.7K/55.9K, net cashflow is $0.338K/4K of 7% operating margin

NOI( excl P&I payment ) is 35K/yr with a Cap Rate of 5.83%.

My main goal is to buy and hold for appreciation not less than 6years and its parts of my retirement plan since I already have a full time career as well.

Operating expenses details per year: 

Property tax         13,200

P&I payment        30,924

Insurance              2,200

R&M(6%)                3,600

Vacancy(10%)        6,000

                                55,944/yr

Operating margin 7%

Any recommendation if my evaluation is feasible considering the local market. I'm I missing something and what can i change to make it viable investment.

Thanks,

James