4 plex offer

[Gentry B.]

I just made an offer on a 4 plex. The market in my state is extremely hot, and EVERYTHING is overpriced. This unit has not been built yet, and it is the only one I can find that can cash flow. Disadvantages: I only get between 6-7% cap rate; the area that it is being built in is saturated with new apartments; high HOA fees. Advantages: The entire area is new development, so there is no run down areas or neighborhoods; the complex has a club house and a pool, which is attractive to tenets; the HOA covers all of the outside maintainence; they are building a campus extension of a local university; close to interstate; plans for business development in the area are extensive.

Thoughts, suggestions?