should this be my first deal?

[Adam McCarty]

I am looking at this deal that includes 2 six plexes and 1 five plex.  It will be one closing and they all share a parking lot.  These are old houses that have been converted into apartments.  My biggest question marks are maitaince and capex.  I have figure them high thinking worst case.  My biggest concern here is that they are boiler heated house.  I havent had any experience with these and dont know what the cost might be.  the two 6 units share a boiler that looked 10-20 years old and the 5 unit has a brand new tank less system.  Also i will be self managing but have put in management for analysis.  Any feed back would be great.

List Price: 250000

Purchase Price:  225000

Repair cost:  35000

Income: before update 7590 after update 9350

Utilities:  1925/1925

Insurance:  225/225

Taxes:  632/632

Snow/lawn Care:  100/100

Garbage: 100/100

Management:  607/748 at 8%

Repairs/maintenance:  1138/1402 at 15%

Capex: 759/935 at 10%

Vacancy: 759/935 at 10%

P&I:  1105/1105

Thank you for any feed back

Adam

[Gino Barbaro]

@adam mccarty

Sorry Adam, i did not see 2 6 plexes, only thought there were 11 units. I love these types of non conforming deals. People only see old houses, not the amount of revenue and cash flow these properties generate. You can usually buy them much cheaper than SFH per unit, and the rents are not that much less.