Is This A Good Multi Unit Deal In Indianapolis, IN 46222?

[Gary Freidman]

I am looking at buying a property in Indianapolis, IN 46222. I am an out of state investors. I know its a C area but I was told its not as bad as many other C areas and the numbers seem to make up for it.

Built in 1958 property has upgrades for the roof and furnace, is 5,009 sq feet with central air and forced air heating. 

Price:  $53,000

Mortgage: $37,500 @ 75% with a 4.6% - 4.7% rate

Closing Costs: $2,000

Rehab Costs: $6,600 (nothing major)

Total Cash Investment of $21,100

Rent $550 a side per month equating to $12,144 annually for both sides with a 8% vacancy provision.

Interest: $1,828.5

Taxes: $800

Insurance: $1,1223

Property management: $971.52

R&M and Capex @15% of Rents: $1821.60

Leasing Charges: $1,110

NOI: $4389.38

Return: 20%