Fourplex Counteroffer Analysis - First Multifamily Investment

[Juan Turner]

Hello BP, This is my first offer on a multifamily property. The property was built in 1988. I rate the neighborhood a B- or B. Each unit is a 2 bed/2 bath. Current rents are $550 each unit. All units are occupied. My original offer was $98,999. The original asking price was $132,000. The property has exceeded 200 days on the market. The seller's counteroffer is $128,000. My COC calculation is 25.17%.  The credit union offering my mortgage pre-qual requires 25% down. A large bank required 25% down as well. I haven't found a credit union or bank in this area that requires 20% down on 4 unit properties. I regularly read post about 20% down payments. What am I missing?  The rate I was quoted the day prior to the most recent FED increase was 3.875. I'm planning for a slight increase...maybe 4%. My down payment (25%) for the counteroffer is $32,000.  Please review my calculations below. I read a few comments regarding CapEx. I'm not sure if I have a clear understanding of CapEx and should I include CapEx in the calculations below. What is a reasonable expectation for COC returns and monthly cash flow per door...my thoughts regarding monthly cash flow is a minimum of $200/mo. Is this realistic? Thanks BP!

Gross Scheduled Income ($2,200/mo)	$26,400
Vacancy Allowance (10%)	$2,640
Total Operating Income	$23,760
Property Taxes	$911
Insurance	$800
Homeowners Association	$0
Maintenance Reserve (10%)	$2,640
Property Management (10%)	$2,640
Lawn Maintenance	$1,200
Total Operating Expenses	$8,191
Net Operating Income (NOI)	$15,569
Mortgage Expense (PI) (458.31mo)	$5,500
ANNUAL CASH FLOW	$10,069
MONTHLY CASH FLOW	$839