Questions about analyzing 5 unit deal in Troy, NY

[Brett Pirie]

The owner has told us to make an offer as the property is not listed.  I'm working on figuring out the numbers that will make this work and I'd like some help looking them over to point out what I'm missing; I fee like I'm missing something huge.  

The building has 5 units, (4x - 2BR and 1x - 1BR), separated utilities and a basement with coin laundry.  I have not seen the building in person yet, just pictures.  It will need exterior paint very soon.  As this deal progresses I will fly out to Troy to check everything out in person.  

Income:

Rent = $3570/mo (from the owner)

Laundry = $40/mo (my estimate)

Total Income = $3610/mo

Expenses:

Operation = $1017/mo (Vacancy 5%, Maintenance 5%, PM 10%, CapEx $295/mo)

Fixed = $1047/mo (Taxes $8300/yr, Insurance $2000/yr, Utilities $134/mo, Lawn/Snow $60/mo)

Total Expenses = $2064/mo

NOI = $1505/mo

CapEx is based on my spreadsheet adding roof, paint, HVAC, water heaters, etc, taking into account the estimated life span and replacement cost of each. The taxes are estimated based on a $200k purchase price. The insurance is an estimate; I will have a quote in the next day or two. The utilities were supplied by the owner. Lawn/snow is an estimate.

From my understanding, 5+ units require a commercial loan. I am working with a lender now, but for starters I'm using 6%, 20 years and 30% down for my calculations.  

I am also estimating $20k in repair costs ($10k for exterior paint plus $10k for unknowns).  

Purchase price $175k:

Cash Flow = $713/mo

Cash on Cash ROI = 11%

Cap Rate = 11%

Purchase price $200k:

Cash Flow = $502/mo

Cash on Cash ROI = 7%

Cap Rate = 9%

My goal is to live in one of the units for year and then hold the property to generate cash flow that can be reinvested (either in this place by paying off the loan early or in a new investment).  

To me, $175k seems like a good deal.  Where are my holes?  What am I missing?  At what point can I ask to see the sellers vacancy and maintenance costs?  

I'm new at this and learning as fast as I can, does anyone have any recommendations for books or other resources on learning more about how to proceed?