HELP ON EVALUATING 15 UNIT APARTMENT!!

[Dusty Bowling]

Hey everyone I’m looking to purchase my first complex . A little background on myself . I’ve been investing for over 20 years . I’ve flipped around 60 single family houses and have built 12 new builds. We also have 25 rental doors. Im looking to scale up and jump out to the first complex. Me being a flipper I was ideally looking for value add. I live an hour outside of Indy and looking in rural areas. Im in talks with the following:

15 unit complex 

Has 5 ranch buildings, C+ area just outside of town. Located on 3 acres each building has its own well and septic. Units were built in the 70’s. Cap rates are going in the 6-7 range . We will definitely over improve on the higher end so I’m guessing we would be closer to the 6 cap. I think we are going to settle around 350,000 purchase price. 

Building 1 ( 4)bedroom rented for 1100 (1) 1bedroom empty needs 15k rehab to be rent ready for 600, (1) 1 bed needs 10k to be rent ready for 600)

Building 2 ( 2) 3 bedroom rentals each rented for 800 market rates are 1000

Building 3 (2) 2 bedroom units each need 25k to be rent ready, (2) 1 bedrooms each need 20k to be rent ready for 600

Building 4 (1) 4 bedroom unit. Renter just left . 5k to make rent ready for 1100 (1) 2 bedroom rents for 700

Building 5 (2) 2 bedroom units. One needs 20k to be rent ready for 700. The other is rented at 700. (2) 1 bedroom units each needs 15k to be rent ready for 600

Currently only 6 units are ready for rent with 4 currently rented at 4,100 month.  

when calculating NOI you do count for just gross market rents. I've checked the area they are what I've stated above .
1100 4 bedroom (2) 2200x12 = 26,400

900 3 bedroom (2) 1800x12= 21,600

700 2 bedroom (5) 3500x12= 42,000

600 1 bedroom (6) 3600x12= 43,200


Gross rents 132,200- vacancies 13,000-management 13,000-expenses 25,000=

NOI= 132,200-51,000= 81,200

81,200/.06= 1,353,333- 220,000 improvements. 1,133,333 - 350,000 purchase price = potential profit 788,333!!!

170k improvements plus 50k exterior improvements. Total of 220k . I’ve done plenty of rehabs so am pretty confident on rehab budget. 

Am I doing this correct? If so this is a slam dunk, home run of a deal. Any help on what I’m looking at incorrectly would be appreciated. Thanks