Connecticut 3 family

[Garrett M.]

Hey all, 

Looking to do my second deal, which would be my first 100% investment property. Currently living in a duplex I bought and managing myself. NYC is super expensive so I am looking out of state in an area that I believe is moving in the right direction. Hoping someone could take a quick look at the below info/numbers and let me know what they think.

The House

3 Family, all units are 2bd/1br, built in 1927, upgraded electric

1st floor - $900 (tenants have been living here for over 2 years, leased). Recently renovated unit. 

2nd Floor  -$850 (tenant has been living here for 4+ years but is section 8, leased). 

3rd Floor  - $800 (new tenants, lease beginning in June. Recently renovated unit. 

Asking 250k

Taxes: $4300

Monthly Expenses (taken from the average of three similar houses on the MLS as this one does not include a disclosure) - I am also trying to overestimate the below expenses to give myself a cushion.

Sanitation $42

Water $175

Landscaping/snow removal (tiny driveway, tiny backyard) $125

Insurance: $150

Fire Insurance: $125

Owner Electric: $25

Vacancy Reserve: $85

Property Mgmt: $230

I think the above should cover it. Please let me know if I am missing anything!

Interior

1st and 2nd Floor tenants have oil heat (they pay for heat themselves), 3rd floor is electric heat (tenant paid as well). Separate electric for all three units. Hot water heaters are newer and boilers are newer. 

I did a walk through this weekend- 1st floor bathroom looks pretty dinky, could be upated but dont want to update until they move out. 2nd floor is old but cannot update until after move out, 3rd floor is fine as is.  

Basement has coin-op 2 washer/dryers.

A few rusted radiator vales need to be replaced, I am budgeting $600

Exterior

House has little curb appeal. Older wood siding is chipped/peeling and will have to repair or replace. I am estimating  $2/sqft and at a little over 3k sqft this comes to about $6k. 

New Gutters: Budgeting $2000

Other Misc Fixes: Budgeting $5000

So to recap:

Asking 250k

Monthly rents $2550 (there is room to increase this as rents are about $50- $100 under market)

Upfront repair costs total :$13700

Total Out of pocket @ 25% down at asking price is $62,500. 

With a 30yr fixed at 5% I am getting a total monthly expenses with mortgage at 2400 while bringing in rents of 2500, this is not so good and a 2.85% cash on cash return is meh...

I believe I can make an offer of 230k and be accepted which brings a return of 4.8% with 230 monthly cash flow. 

If I can get a rate of 4.5% I have a 5.98% return which doesn't seem so bad to me. 

Anyone available to do a quick once over and tell me what they think, good or bad it would be most appreciated!

Thanks!