Possible 4 Unit Deal Advise

[Jeff Johnson]

Please let me know what you think. I have a seller that has a 4 unit he's looking to sell. Built in 1915. There are two 2/1 and two 1/1. The 2 bedrooms rent for 1k each and the 1 bedrooms rent for 900 each. The renters have been there for 15 years 10 years 3 years and 2 months. 2 of the units have been updated some about 4 years ago. The other 2 are more out dated. The seller is looking for 320k purchase price. Does this sound like a good deal? 

[Aaron F.]

All utilities separately metered? Meaning 4 furnaces and 4 water heaters? Here is my quick math for self managed.   

45600 gross

-4560 vacancy

-2600 taxes

-3000 insurance

-4000 cap ex

-2000 repairs

29440 NOI, 9.2%

Debt:

80k down, 240 mortgage

-15456 debt service 

13984 cash, 17.4% ROI + debt pay down

You could do a lot worse. Do you like the place? Do you like the area? Would you go there at night?