Potential deal on 5-units

[Josh Layhue]

I found a property near my home that is in a decent area. I live in an area where cash flow is fairly easy to come by but appreciation is low. The deal consists of two buildings on one parcel of land: a triplex and a duplex. The numbers look like this:

Property price: $47,000 (our offer)

# of units: 5

Monthly Rent: $1,900

Expenses (assuming 50% rule): $950

Down Payment: $10,000

Monthly Debt Service: $287 (20 years at 7%)

Monthly Cash Flow: positive $663 ($130/unit)

I've had the place inspected and it will take some money to fix it up. We can afford the renovations if we decide to purchase the property.

Estimated cost of renovations: $15,000.

To me, this seems like decent deal... but I'm still very new. What's your opinion? What am I missing?