Massachusetts Deal Analysis

[Andrew Auger]

Hello Everyone,

I was hoping you all could take a look at this deal that I am looking at for a second time. We are not under contract and I want to make sure my math and my estimates make sense so I can go in with a strong position as what to offer. 

I put the details in the google doc as its easier to display than in the posting section.

https://docs.google.com/spreadsheets/d/1Gi7HweJKvb...

Additional Non numbers information

• This would be my first property
• Yes there are cheaper places
• No I can't buy those as they are too far from my and my fiances places of employment (this one is already on the edge)
• Owner Revenue is us paying ourselves our current rent
• Would consider this a B property in C neighborhood 
• Each unit has central air, W/D, & Dishwasher, all of which are considered luxury items in an apartment. Means premium rents for the unit sizes.

Facts & Assumptions

• Owner did major renovation approximately 5-8 years ago including roof, heating systems, water tanks, windows, and central air. 
• 1BR units Heat is not separate, but has new energy efficient gas heater.
• No Comps are available
• In my opinion it is priced too high as if it was priced correctly, it would have sold, will attempt to push price down as I doubt it will appraise
• I believe the maintenance amount provided is artificially high due to inclement winter weather, we had record snow this year. Being a owner occupant means that I would do my own snow removal vs paying for it.
• House is over 100 years old
• First house I have found to cash flow in my search radius
• Using FHA or Mass Housing (similar to FHA) loan with a 3.5% or 5% cash down
• Have cash reserves above and beyond down payment

What do you guys think? Would you do this deal? Am I forgetting anything major in my cash flow calculations? My biggest concern with this property is that I don't believe the seller will budge on the price, which means it won't appraise, which means I don't qualify for the loan.

Thanks in advance!

Andrew