In need of deal analysis advice on a 7 unit

[Kamil Maras]

Hello,

Could I ask for some advice on this one.

Buy and Hold strategy

Location: Fort Myers Florida

Seven Unit Property, Concrete Block, One Story.  Build 1979.   Undesirable part of town (C), 1 Bed/ 1 Bath units.

Price: $220,000 (willing to negotiate)

I estimate $25K in renovation.

Each unit $475. NOI $20,400, Tax $2,100.00

The seller is willing to do $60K down seller financing, terms TBD

Buying cash produces 8 Cap, 7.4 C/C

Buying Seller Financing with 30 yr amo. $60K down at 6% (terms as an example) 8 cap. 7.7 C/C.

[Curt Davis]

Well just my .02 cents,  if the home is in an undesirable part of town I would want to be over 10CAP but if the units were in nicer more desirable areas I would be ok with what the rates are currently. 

My guess is that each unit needs more then $4k in repairs but that's just me. I based that on the fact the rents are low meaning tenant quality is low.