Is this a good investment opportunity?

[Jakobe Smiff]

Hello,

I'm new to the forums and was hoping to get some advice about an multi-family investment opportunity.  In general, I'm curious if this is a good investment opportunity long-term and what other information I should know to help make the decision.

Here are some of the numbers:

Property Value: Estimating ~$800,000, but it hasn't been officially appraised since it was purchased 10 years at $500,000.

Taxes: $4,000

Insurance: $2,100

Year Built: 1912

5 Total Units: 2Br/1Ba, 2Br/1Ba, 2Br/1Ba, 1Br/1Ba, Studio

Utilities: Owner pays only water and trash.

Mortgage: Despite being zoned as a 5-plex, the property has been approved for residential mortgage previously (one unit classified as storage during appraisal).

Previous Gross Rents: $45,480 (previous owner was very generous with rent to family/friends)

Estimated Gross Rents: $69,600 (based on market value)

Previous Annual Expenses: $12,500 = 27% of gross rent. (including: water, maintenance, repairs, insurance, taxes, licenses, etc.)

Estimated Annual Expenses: $45,240 = 65% of gross rent. (including everything mentioned above).

Other: All units have been routinely occupied and the location is excellent.

I plan on managing the property myself and living in one of the units, but may ultimately live elsewhere and use a management company.

Thanks,

Jakobe