Help analyzing an 8-Unit MF property

[Nick Phillips]

I ran the numbers on this property. Would like to get more feedback on this if my math looks right. 

8 unit property with 2 bedrooms in each unit. All units are below market rent at 700. So there is value add to raise rents by $200 a door.  That's $1600 more per month however would not be immediate as it would have to happen at lease ends and might have to deal with vacancies. 

Another value add is to shift the water responsibility to the tenant's.  This currently sits at $657/month for water/sewer/garbage. I'm not sure how much garbage would be monthly if that was split out.  

Here is the analysis on purchase: 

https://www.biggerpockets.com/...

Here is after rents are raised and water is sub-metered for each unit (took just 300/month off water bill). Cash flow is then $744 which is almost $100/door.  

https://www.biggerpockets.com/...

Would this be worth it?  I would appreciate any advice!  

Thank you,

Nick

[Jeff Costa]

The only loan that matters is what you can get today, which is roughly 6.65% + 50 basis points. Its OK to find a bad deal, and determine its not for you. Sometimes not doing the deal is the best deal!

Keep analyzing properties and learning. When you find one that positively cash flows (even with conservative variables), you will see it.