4-plex deal analysis

[Sandy S.]

Hi BP!

I found a 4-plex in my area that I'm thinking about putting an offer on. However, this would be my first property, and being a noob, I'm in a bit of an analysis paralysis state. I wanted to post my numbers here in hopes of some feedback. If this is the wrong forum for this question, please let me know (and my apologies in advance).

Everything below is on an annual basis.

Estimated Gross Rent: $31,200 - raising rents across the board by ~50/unit. My realtor says I could realistically go higher here too, but I'd prefer to be conservative.

Operating Expenses: $3,774 - I got this number by averaging the expenses provided by the seller for the last three years. (My initial number was 15% of gross rent)

Vacancy (10%): $3,120

Mortgage (P&I): $12,000 (20% down, conventional financing at ~4.3%)

Taxes & Insurance: $9,000 - this number is from the seller (my mortgage broker had estimated $7,500)

NOI: $24,306

Asking Price: $325,000

Considering Offering: $250,000

Cap Rate: 9.72%

Cash Flow (annual): $3,323

Return on cash: 6.65% 

Income per door (annual): $831

In addition to any feedback/thoughts you might have on this property/analysis, I have a couple specific questions:

- The BP podcasts that I've listened to talk about wanting a return on cash > stock market returns, so say ~12%. Is that what you look for too? Or is this 6.5% a "good enough" deal, given that don't want to put the money (down payment) in the stock market? This is an A/B neighborhood property and I'd like to keep it for a while, if not forever.

- Does anyone factor in one time expenses (e.g. closing costs, potential upgrades/repairs the property might need) into their analysis?

- I'll be managing this property for at least the first year, perhaps two. After that, I'd like to turn it over to a property manager. I haven't accounted for that expense in my analysis, partly because it would make my offer even lower relative to their asking price, and I feel odd/unsure of making a "lowball" offer

- If I do make the offer above (~75% of the asking price), would the seller be offended? Or would my realtor think I'm wasting their time? 

Thank you very much for your time any insight you may have!