Newark, New Jersey - 3 Family househack analysis request

[Allen C.]

Good day to all!

I am considering a househack in the North Broadway neighborhood of Newark, NJ.

Comps range from $295k - $325k (from dual agent that I showed me the property).

The property is a legal 3 family with a bonus unit:

Unit 1 - 2br/1ba = $900 (occuppied)

Unit 2 - 3br/1ba = $1200 (vacant)

Unit 3 - 3br/1ba = $1200 (vacant)

Bonus Unit - 1br/1ba = Owner Occupied

Would you do the deal base on the following numbers...Feedback would be appreciated.

Annual Gross Income - $39,600

Annual Total Expenses - $19,728

Vacancy - 5%: $1980

Tax: $5777

Ins: $1500

Maint - 5%: $1980

Repair - 5%: $1980

Property Mgmt - 10% - $3960

Utilities paid by owner: $2544

Electricity (common areas): $264

Water/Sewer: $1800

Lawn/Snow: $480

Annual NOI: $19,872

Purchase Price: $295000

- 3.5% Down: $10,325

+ 5% Seller Concession: $14,750

Total Loan Amount: $299,425

Annual Debt Service: $19,416

Principal/Interest - $1416

Mortgage Ins (FHA) - $212

= $1618/month 

Returns

NOI - Debt service = $456 Annual Cashflow

- $792 (2% of Annual Gross for Cap Ex Reserve)

= $ -336/yr

Thanks!