First buy - are we getting someone else's cosmetic flip

[Holly Stoltz]

We're closing on a 6 Plex in a couple weeks and are having doubts. The property is in a great area (Class C) but with a need for more housing. Renting is never an issue. His leases are month to month and he pays all utilities. Cash on cash ROI is 19%. Cap rate 10%. He fixed the exterior - new windows, siding, and roof. However, we got caught up in the numbers and are now second guessing our decision. The 3 buildings were built in the early 1920's. All of them still have lathe and plaster interior walls which means the wiring is all old. The electrical services need to be updated (3 in total due to the 3 separate buildings). Heating units were not recently updated but we're not sure how old they are as we have not had an inspection yet. The plumbing is questionable as well. The lots have large cottonwood trees, which means potential tree root issues and he had one line already snaked because of that.

We have $100,000 to invest which is the down payment for this property. Do we take a chance because of its potential return and future development of newer rentals (the lots are large enough to tear down one house and put a 6-8 Plex in its place) or is the cost of updating too much of a risk. Any advice would be greatly appreciated! We are excited to begin this journey and want to make sure we're not making a huge mistake.