Would you do it?

[Aaron Nelson]

Came across a deal today I thought I'd seek some advice on.  There is a 7 unit D class property consisting of two duplexes that are efficiency 1 bedroom apartments on each side as well as 3 small houses all spread across two lots. Five of seven units are rented with a gross income of $2500 per month. The other two units are completed gutted down to the studs. Basically, all 7 units are capable of renting for $500 each per month making a potential income of $3500 per month. The current owner is paying all utilities which amount to $900 per month for the entire property. There is only one water meter and three electric meters which limits the ability to switch the tenants to paying their own utilities. The seller is asking $80,000 for the property. It had been listed at $119,000 for quite some time. The seller has no financials they can provide except for a few electric, gas, and water bills. I would estimate that $20,000 total would get the two units into rentable condition. Taxes are only $685 per year. Two of the units were recently remodeled. 

Am I missing anything? Would you guys jump on it without knowledge of expenses? It doesnt sound like they have kept accurate records.