7-Plex Analysis. Thoughts?

[Kevin D.]

7-Plex Analysis.  Please let me know what you guys/ladies think.  My biggest reservation is that the building it out of state.  I have family in the area, so I know the neighborhood is 'OK', but not being local is a concern of mine.

Listed at $119,000

Potential Offer Price: $109,000

Down Payment (20%): $21,800

Rate: 4.5%

Term: 5/15

Closing Costs: $8000 estimated

Improvements: $18,000. Code enforcement requires the flooring on the deck on each level to be replaced. Needs new flashing around the chimney. Much of the rest is cosmetic (according to the agent). I'm going to look at the property this week. Based on these numbers, some are estimates and some were given by the listing agent, I'm projecting a ROI of 26.8%.

Heat is gas and is paid for by the tenants.  Electric is paid for by tenants as well.  Roof and windows are "new-ish".

Only two of the units are rented now.  Allegedly, all were rented at one point, but the owner has been working on them as the leases ran out.

4x 1BR: $425, 425, 500, 500

2x 2BR: $600

1x 3BR: $750

Total Rental Income: $3800

Revenue: $3800

less Vacancy (10%): $380

less Electric: $40 (Common Area)

less Snow Removal: $80

less Gas: $40 (Common Area)

less Fire/Liability Insurance: $227

less Water: $260

less Sewer: $67

less R/E Taxes: $533

less MGMT Fees (8%): $274

NOI/mo: $1900

Debt Service: $831

Cash Flow: $1069