Help looking at multi family deal

[Daniel Levine]

Hi all, I am struggling with the analysis on this one. I am looking at purchasing 3 multi families from the same owner. The only way the deal will work is if I purchase all 3. My biggest concern is that two of the properties (church st and Center st) are located in an area that may never see any appreciation, and there is no easy exit strategy. Multi families are not desirable and only investors will purchase them from me. I am afraid that leaves me with few options for exiting quickly if needed. However from a cash flow perspective they are very good. I will try and lay it out below so you can give me your feed back. Thanks in advance.

Foordmore Rd house: Triplex only one unit is completed 2 others need finish work

Purchase Price	$60,000.00
Down Payment (25% Down)	$15,000.00
Improvement Ratio (Value of Land subtracted from purchase price)	82%
1st Loan	$75,000.00
1st Interest Rate on Loan	6.00%
1st Term of Loan	20
2nd Loan Amount
2nd Interest Rate on Loan	5.25%
2nd Term of Loan
Yrs of Depriciation	27.5
Expected monthly Rental Income	$3,200.00
Expected Annual Rental Income	$38,400.00
Vacancy/Collection losses %	10%
Property Tax	$2,842.00
Insurance	$2,400.00
Repairs/Maintenance (10% of Gross)	$3,840.00
Electricity	$1,200.00
Gas	$-
Oil	$-
Water/Sewer	$-
Trash	$-
Advertising	$-
Management Fees (10% of Gross Income)	$-
G&A	$200.00
Annual Increase in income	1.0%
Annual increase in Expenses	3.0%
Annual Increase in property Value	2.0%
investors Tax Bracket	28.0%
Self Employment tax	0.0%
Total Tax Rate	28.0%
Immediate Cash Improvements	$37,775.00
Total Cash Investments (Down payment + Rehab+Closing Costs)	$55,875.00
Total Purchase Price (rehab+purchase price+closing costs)	$100,875.00
Loan - initial Cash investment	$19,125.00
Buying Cost %	$3,100.00
Sales Cost %	9.0%
Estimated Value After Capital improvement	$100,000.00
Summary:	1st Loan
Loan Amount	$75,000.00
Interst Rate	6.00%
Term of Loans	20
Monthly Principal and interest	$537.33
Yearly Principal and interest	$6,447.91
Annual Operating Income	Yr 1
Gross Operating Income	$38,400.00
Less Vacancy/Collection (10%)	$3,840.00
Effective gross income	$34,560.00
Annual Operating Expenses
Property Tax	$2,842.00
Insurance	$2,400.00
Repairs/Maintenance	$3,840.00
Electricity	$1,200.00
Gas	$-
Oil	$-
Water	$-
Trash	$-
Advertising	$-
Mangement Fee	$-
G&A	$200.00
Net Operating Income	$24,078.00
Market Value of Property	$100,000.00
Capital Rate of Return (NOI/Market Valve)	24.1%
Cash Flow
Net Operating Income	$24,078.00
Yearly Principal and Interest	$6,447.91
Cash flow before tax's	$17,630.09
Monthly Cash Flow before taxes	$1,469.17
Taxes
Net Operating Income	$24,078.00
Annual interest	$4,500.00
Annual Depreciation Improvement	$1,789.09
Taxable Income	$17,788.91
Income Tax Due	$4,980.89
Cash Flow after Taxes	$12,649.20
Monthly Cash Flow After Taxes	$1,054.10
Cash on Cash	23%

Center St House: duplex fully rented needs new roof and some minor plumbing work

Purchase Price	$40,000.00
Down Payment (25% Down)	$10,000.00
Improvement Ratio (Value of Land subtracted from purchase price)	82%
1st Loan	$45,000.00
1st Interest Rate on Loan	6.00%
1st Term of Loan	20
2nd Loan Amount
2nd Interest Rate on Loan	0.00%
2nd Term of Loan	0
Yrs. of Depreciation	27.5
Expected monthly Rental Income	$2,125.00
Expected Annual Rental Income	$25,500.00
Vacancy/Collection losses %	10%
Property Tax	$2,500.00
Insurance	$1,800.00
Repairs/Maintenance (10% of Gross)	$2,550.00
Electricity	$1,920.00
Gas	$-
Oil	$1,867.57
Water/Sewer	$3,000.00
Trash	$-
Advertising	$-
Management Fees (10% of Gross Income)	$-
G&A	$300.00
Annual Increase in income	2.0%
Annual increase in Expenses	3.0%
Annual Increase in property Value	0.0%
investors Tax Bracket	28.0%
Self Employment tax	0.0%
Total Tax Rate	28.0%
Immediate Cash Improvements	$16,060.00
Total Cash Investments (25% ARV + closing costs)	$17,500.00
Total Purchase Price (Rehab+purchase price+closing costs)	$58,560.00
Buying Cost %	$2,500.00
Sales Cost %	9.0%
Estimated Value After Capital improvement	$60,000.00
Summary:	LOAN PMT
Loan Amount	$45,000.00
Interest Rate	6.00%
Term of Loans	20
Monthly Principal and interest	$322.40
Yearly Principal and interest	$3,868.75
Annual Operating Income	Yr. 1
Gross Operating Income	$25,500.00
Less Vacancy/Collection (10%)	$2,550.00
Effective gross income	$22,950.00
Annual Operating Expenses
Property Tax	$2,500.00
Insurance	$1,800.00
Repairs/Maintenance	$2,550.00
Electricity	$1,920.00
Gas	$-
Oil	$1,867.57
Water	$3,000.00
Trash	$-
Advertising	$-
Management Fee	$-
G&A	$300.00
Net Operating Income	$9,012.43
Market Value of Property	$60,000.00
Capital Rate of Return (NOI/Market Valve)	15.0%
Cash Flow
Net Operating Income	$9,012.43
Yearly Principal and Interest	$3,868.75
Cash flow before tax's	$5,143.68
Monthly Cash Flow before taxes	$428.64
Taxes
Net Operating Income	$9,012.43
Annual interest	$2,700.00
Annual Depreciation Improvement	$1,192.73
Taxable Income	$5,119.70
Income Tax Due	$1,433.52
Cash Flow after Taxes	$3,710.16
Monthly Cash Flow After Taxes	$309.18
Cash on Cash	21%

Church St house: Unoccupied, needs total rehab but has 3 units:

Purchase Price	$10,000.00
Down Payment (25% Down)	$2,500.00
Improvement Ratio (Value of Land subtracted from purchase price)	82%
1st Loan	$45,000.00
1st Interest Rate on Loan	6.00%
1st Term of Loan	20
2nd Loan Amount
2nd Interest Rate on Loan	0.00%
2nd Term of Loan	0
Yrs. of Depreciation	27.5
Expected monthly Rental Income	$2,600.00
Expected Annual Rental Income	$31,200.00
Vacancy/Collection losses %	10%
Property Tax	$2,800.00
Insurance	$1,200.00
Repairs/Maintenance (10% of Gross)	$3,120.00
Electricity	$2,880.00
Gas	$-
Oil	$2,800.00
Water/Sewer	$4,500.00
Trash	$-
Advertising	$-
Management Fees (10% of Gross Income)	$-
G&A	$300.00
Annual Increase in income	2.0%
Annual increase in Expenses	3.0%
Annual Increase in property Value	0.0%
investors Tax Bracket	28.0%
Self Employment tax	0.0%
Total Tax Rate	28.0%
Immediate Cash Improvements	$41,200.00
Total Cash Investments (25% of ARV+closing costs)	$16,600.00
Total Cost Purchase Price + Rehab + Closing Costs	$52,800.00
Buying Cost %	$1,600.00
Sales Cost %	9.0%
Estimated Value After Capital improvement	$60,000.00
Summary:	LOAN PMT
Loan Amount	$45,000.00
Interest Rate	6.00%
Term of Loans	20
Monthly Principal and interest	$322.40
Yearly Principal and interest	$3,868.75
Annual Operating Income	Yr. 1
Gross Operating Income	$31,200.00
Less Vacancy/Collection (10%)	$3,120.00
Effective gross income	$28,080.00
Annual Operating Expenses
Property Tax	$2,800.00
Insurance	$1,200.00
Repairs/Maintenance	$3,120.00
Electricity	$2,880.00
Gas	$-
Oil	$2,800.00
Water	$4,500.00
Trash	$-
Advertising	$-
Management Fee	$-
G&A	$300.00
Net Operating Income	$10,480.00
Market Value of Property	$60,000.00
Capital Rate of Return (NOI/Market Valve)	17.5%
Cash Flow
Net Operating Income	$10,480.00
Yearly Principal and Interest	$3,868.75
Cash flow before tax's	$6,611.25
Monthly Cash Flow before taxes	$550.94
Taxes
Net Operating Income	$10,480.00
Annual interest	$2,700.00
Annual Depreciation Improvement	$298.18
Taxable Income	$7,481.82
Income Tax Due	$2,094.91
Cash Flow after Taxes	$4,516.34
Monthly Cash Flow After Taxes	$376.36
Cash on Cash	40%