4 unit complex evaluation

[George P.]

it's my first time looking at this, so be gentle. lol

4 units - two-2 bed, one - 1 bed, one 2 bed that will be converted to 3 ($500 cost)

$2,825 current rent - 750+775+450+850 (she is behind and will be evicted);
274k - asking price. the realtor said i can get it for $230k.
~$3k - cover garbage,water, lawn maintenance
5k - taxes
$4500 - insurance

interior work - 6k max (not much)
exterior work - minimal
roof - almost new - 5/6 yrs old
plumbing - good - 100 gal tank is 5 yrs old
electrical - good
tenants pay gas and electric

so, calculations assuming that purchase price is 220k:

yearly rent = 25,380 (12*2825)
annual expenses = 19k (tax, maintenance, insurance, snow, water, property management, etc)
loan payment (30% down) = $9,240 ($770/month)

without any cap rate calculations, there's no money left over (25-19-9.2). in fact, i'd be losing money.

the worst thing is that across the street there is a "2 bed for rent" sign and when i called he said "do you have kids? it's $630/month". that price is very low to compete with..

@Ryan M , here you go.