14Unit Efficiency Deal Analysis In GA- Help Needed!!!

[James H.]

Hello BP fam, the question is what am I missing? I have purchased a few SFHs and duplex in the past 6mos so I have some experience but not a lot. I believe in being resourceful and taking action! I can really use your help on my first commercial apartment deal. It was presented to me by a broker whom I built a relationship with over the past few months looking at some of his other property listings. It's an off market deal that I have under contract after some serious negotiating.... Here are the numbers. 

14 efficiency units

Owner Finance Purchase $230,000

Down Payment 10%

Interest 5%

Ballon 3 years

30 year Amortization

Current NOI is $24000/year with 2 vacant units and 1 tenant not paying

Cap rate trading at 8% (Not sure how reliable this is.) 

Average rents are $300, but this is below market of $375-$425 

Landlord is paying utilities but it seems they are trying to transition into tenants paying by the looks of the cash flow statement. All the utility numbers do not add up.

If you are interested in being a good BP Sport I can send you the cash-flow statement and rent roll. Would loved to get your feed back. 

https://www.biggerpockets.com/calculators/shared/5...

Thanks in advance!