Does this deal make sense?

[Gregg Reinbold]

I am looking at a property that includes two buildings.  A five unit apartment building and a second  4,400 sq ft building. 

$60,000 Purchase price

$155,000 rehab

$ 3,575 / month gross rental after rehab on apartment building (not including the 4,400 sq ft building)

expenses;

vacancy = 5%; Repairs = 5%; electric for common areas =$50 ; Water/ Sewage = $100 ; Garbage = $89 ; insurance = $200 ; management 8% =$ 286; Property tax = $250 ; misc = $125

P& I =$1,667

Monthly cash flow on apartments = $345 plus I have use "free" use of the 4,400 sq ft building (which is my main goal in the deal