Deal or No Deal - 8 Door Appt. , Rural but College town, Owner finance

[Michael Hoover]

I have been offered an exclusive Deal by a local "friend"/ semi-mentor in my small town. 

 8 standard 2/1 apartments -  Quad, duplex, duplex, 1970 Dated buildings, little neglected but liveable

Owner finance: 20yr 6%rate with 20k down

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Total purchase 400K

Current NOI: 41k     Cap: 10
         (Tax,Ins,Maint, Util)

Gross rent 4500/mth

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Upgrade, Est repairs: 60k 

After reno: NOI: 59K   

Gross rent: 6100

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Loan pmt: 2865/mth,    34k/yr

Current Cash flow: 531/mth,  6,378/yr

After reno Cash Flow: 2131/mth,  25,578/Yr

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Added info- 
-Property line Joins with (growing) Community college

-Tiny town

-The Buildings are Currently "uglyish".

- Current Rent is 150$- $200 behind market avg.

I am very comfortable in single family homes in this town (own 18 SFH rented and performing well). First apartment purchase. Any advice welcome!!

Deal, no Deal!?

[Albert Lubin]

I’m a newbie so please forgive me but the Opex at 24% of the Gross rental income seems low. Are those your estimates or the sellers? I’m also assuming you intend to manage them yourself, right?