A little more complex than Im comfortable with

[Troy Brown]

Morning Team,

I am a military member who has a small portfolio of homes and after joining the site i have really been scouring a few markets im comfortable with for that perfect multi-family. Ive made a few offers but none have come within an acceptable margin so i had to pass on them. My Investor-Friendly realtor recently presented me with an opportunity and although im interested i think there is some complexity that puts it a little out of my realm of understanding. Please take a look and give me your thoughts.

It is a bundle of 5 condos presented by a local bank they are asking 37k a piece but my realtor thinks we could get them at 30. below are some details and an initial analysis of a cash on cash deal. (I will need to finance)

Below are the rents, HOA's, etc. relative to the 5 Units at Pinegrove.
Unit F is vacant. One of the others (unit - C, I think) has an expiring lease,
the other three are presently on month to month.

Rental Income

Unit Rent Yearly
Unit I $650 $7,800
Unit II $600 $7,200
Unit III $600 $7,200
Unit IV $625 $7,500
Unit V $590 $7,080 *This unit is vacant at present.

Total $3,065 $36,780

Expenses

HOA $100/month $6,000
Property Manager 10% $3,678
Taxes $696/unit $3,480
Insurance $700/unit $3,500
Up Keep $3,000
--------
Total $19,658

Net Income $17,122 (for all five)

Debt Surface (assuming i purchase 4)

120k - 24k down payment (20% per my loan officer)=96k

96k @ 5%= ~515/month (P&I) or 6184/year

If im simply dividing the 17k number above by 5 i see that i could net almost 3500/property/year for a total of 14k once paid of or 7816/year while paying on the debt.

My question first and foremost is how do the numbers look?

Secondly, im curious about the best way to finance this? My loan officer and agent have advised that if i tried to do anything commercial it would incur a higher downpayment and interest rate. If i do traditional, however, im worried id have to get a loan on each property which would incur multiple closing costs etc etc etc...

Any help or thoughts would be appreciated

Thanks,

Logan