Know When to Hold'em

[Ricardo Rodriguez]

Greetings Fellow BPers,

Seeking some advise on my 1st buy-hold LL deal.  I know of a deal whose numbers work out like so:

Monthly Income: $1,200.00	Monthly Expenses: $1,016.25	Monthly Cashflow: $183.75	Pro Forma Cap Rate: 9.10%
NOI: $4,640.00	Total Cash Needed: $13,200.00	Cash on Cash ROI: 16.70%	Purchase Cap Rate: 11.05%

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(tool sourced: https://www.biggerpockets.com/buy-and-hold-calculator)

Pros:

• 2 story home, with 50% equity potential (once the repairs complete).
• Tenants are paying on time for 1+yrs and each have renewed for 10+yrs each time.

Cons:

• Needs 10-15k in repairs within the 1st 2years.
• Home is a SFH currently with two families (one upstairs and one down) using separate entrances and kitchenettes.
• Legacy agricultural district converted into rural homes, so their neighbors have pigs in their yard, goats, mobile homes, etc...
• Not entirely sure what the following means, but the seller states the following and wonder if this automatically means I will not be able to get financing from a bank:
  1. "This property will be quick claim deeded to buyer, buyer needs to be a cash buyer. It was a tax deed sale. Ideal owner would be buying to keep it as a rental after 4 years of ownership it automatically has clear title. If not, buyer would have to sue for quiet title in order to resell."

Unsure if the above is a good deal or not.  Having trouble making up my mind on it.  I haven't called a lender yet to see if it's even possible from that standpoint.