Need Feedback On Multi-Family Analysis

[Josh Halagiere]

Hello!

I'm a SFH wholesaler and I'm looking for some feedback on my analysis of a 6-unit multi-family building located in the western suburbs of Chicago.

My recent postcard mailer generated a lead for a 6-unit apartment building in the Elgin area. Lacking multi family experience but considering the owner is motivated to sell and from the information provided this appeared to a very solid lead. So I quickly tried to learn everything I could about analyzing multi-families. Of course I utilized all the great info here on BP (podcasts, blogs, posts, calculator, etc.). Here is some of the property info ( I received a pro forma from the owner but will request P&L and rent rolls once under contract) as well as my calculations for Cap Rate and NOI. To me, and if I did the calculations correctly, this appears to be a real cash cow investment property that I would ultimately wholesale to a cash buyer.

-6-units fully rented ( 2-1bdr/1ba, 4-2bdr/1ba)

-Sale Price to end buyer = $420K

-Yearly rent = $72K

-Yearly expenses = $21K (includes taxes, utilities, insurance, garbage, exterior maintenance)

-NOI = $51K/yr

-CAP Rate (NOI/Price) = 12.14%

Please let me know what you think!  Any thoughts or feedback is greatly appreciated.

Thanks - Josh