What do you think of this deal?

[Tyler Smiarowski]

Here it is:

Purchasing 7plex with 6 garages for 195k. Located in historical district of Cedar Rapids surrounded by mostly commercial property and a brand new medical facility.

Bank is lending 177,600 and I am having the seller carry a 2nd of 17,400 amortized over 20years @ 5% with a 5 year baloon. So I am not putting any money into the deal.

Income:

Rents - $2895 per month

Laundry - $80 per month

Garages - $220 per month

Total Income - $3195 per month

Expenses: Total $2400 which includes $162 per month of maintence factored in.

Net cash flow per month is $795. Current rents are low for the market, easily will be able to increase rents by a total of $250 per month and reduce property taxes from $558 per month to $300 once I co op the properties, which I have done with my other properties. Based on the figures my projected net cash flow would then be $1345.

Just wanted to get some opinions on this. I am closing on this Nov 4th. This will be my 6th multi family property for a total of 23 units.

Thanks, Tyler