Want to buy my first commercial residential property, help!

[Meghan McCallum]

Hey guys, I'm looking to jump into the larger multi unit arena and really just don't know how best to analyze a deal. Gosh, I sound ridiculous saying that, but I've been buying MFs and SFs and I have the money and thick skin to go bigger. I would want to be as hands off as possible as I'm trying to remove some of the stress of failing contractors and bad employees. Is there a great formula to analyze bigger deals?

This is in a city with a 400,000 person 20 mile radius in the midwest, it is predominantly blue collar and military, it is 39 units 9 garages

Here is the one I like most:

Efficiency 2 @ $430= $860                                          Local average $450

1 Bedroom 20 @ $551 = $11,020yr                                       $550

2 Bedroom 17 @ $617=$10,489yr                                         $670 +- 3%

Laundry Income  = $360yr

Carports & 9 Garages

Less Vacancy  % 4 = $909

MONTHLY  Income $22,729

YEARLY $261,838

Expenses

TAXES 2015                                              $42,300
INSURANCE *REPLACEMENT COST      $18,700
WATER/SEWER                                        $12,223 

GAS/ELECTRIC                                         $18,329

WASTE                                                      $7100

MAINTENANCE/ SUPPLIES / CAP IMPROVEMENTS/ ROOF/ GUTTERS/ ELEVATOR $22,7k

MANAGEMENT *6%                                 $15,382

SNOW/LAWN CARE                                  $2,305

LEGAL/MISCELLANEOUS                         $2,592

TOTAL EXPENSES AND % OF INCOME 54% $141,556

This is located aross the street from a catholic church and grade school on a semi busy street. It is in a B+ neighborhood in a C city.

Two Buildings Built 1968 & 1964 Newer window throughout, some flooring replaced

SELLER ASKING $1,200,000 MAKE OFFER
ESTATE SALE!!

What questions should I be asking? Is this a deal? What would you offer?