funky 5 unit - accepted offer...thoughts?

[Julian Illingworth]

I have an accepted offer on a funky 5 unit. 1 SFR and a 4 studio apartment building in Washington state, non-conforming lot, grandfathered in. Fully rented right now. I tried to be conservative with numbers.

Price $105,000

rents - 2450 gross.

vacancy 15% - 2082

utilities - 600

maintenence @3%/year - 262

prop tax - 100

insurance - 75

prop management - 166

landscaping - 80

NOI - 848 / m

I have access to flexible non-traditional funding, which I think has been an issue for this property. Sort of a weird property, needs commercial financing, but very small loan (so high costs comparatively) and most commercial buyers are looking for larger purchases, plus non-conforming, so appraisers won't give value all the properties.

Units are not individually metered for any of the utilities, which I am going to look into, the water bills are through the roof right now.

Seeing the property tomorrow.