What do you think about this Sub2 deal?

[Shawn Ackerman]

Hello Bp'ers I recently met with a seller and she has 5 duplexes that she wants to let go of as she is ready for retirement. Here are the numbers. Let me know if the deal makes sense for Sub2. Keep in mind that I intend to pay the closing costs for the deal. which is around $850 per property. All properties are in good shape requiring less than $500 in cosmetic repair per property. All units are currently rented slightly below market. I intend to hold these properties long term as they are in great shape. 4 of the properties are in C/D neighborhoods with not much chance for appreciation.

Thanks!

One property is free and clear valued at around $42,000

These are the numbers for all 5 properties.

Currently Owes mortgage on 4 of the 5 properties = $266,000.00

Current total value of the properties are =225,000 .00

Total Annual Rents = $80,700.00

Total Monthly Rents = $6,725.00

Current Taxes = Annual $5,640.00

Current Monthly Taxes - $470.00

Total Monthly operating expenses Cap Ex, Maintenance, PM, Vacancy = $2,017

Total Annual operating Expenses - $24,204.00

Total monthly water/insurance = $1,215.00

Total Annual water/insurance Expenses = $14,580.00

Monthly Net Operating Income - $3,023
Annual Operating Income - $36,276

Cap Rate: 8.7%
Monthly PITI = $2,085.46