7-plex analysis Salt Lake City

[Kelly Stevens]

Ok What do you guys think about this deal. I am under contract for a 7-plex near downtown SLC UT. It is 3 blocks from trax to the University. Good neighborhood. These are all one bedroom units with their own heating/ac unit and hot water heater. Off-street parking. The building is older built in roughly 1960. Units are in rough shape but they have good bones. Shared washer/dryer and individual storage units are on site.

Price - $595000

Current under-market rent income $4125/$49500

Needs new roof: $9000 and conservatively $4000 each unit to update to low average market price which is $725/unit or $60900/year.

Taxes and operating costs will run $1225/14700. Vacancy is $304.5/3654 and there is income on the washer and dryer of roughly $100/1200.  So I get a net income of $3645/43746. My mortgage would run $2976/3571 (I am putting in $50000 and refinancing a very equity rich triplex to pull out $170000). So the cash flow is only $182/$2190.

Any input?