23 Unit Review- It looks good to a newbie

[Chris Reichelt]

Hi all!

So I own a few SFR and want to move up to apartment complexes. I live in NJ and have analyzed several deals here, however, there seems to be better opportunities in Philly. Ive come across this one and It seems to be pretty solid. Any thoughts? Thank you for taking time to help out a multifamily newbie!

Philadelphia, PA

List price: $1.035M

Units: 23

BUILDING SIZE: 16,236 SF

Gross Income $188,760

Operating Expenses $100,614

Net Operating Income $88,146

Pre-Tax Cash Flow $33,515

Rents vary but the average is $668 and there is value add

By my figuring I'm looking at:

Monthly Income: $15,718.00 

Monthly Expenses: $13,487.39 

Monthly Cashflow: $2,230.61 

Pro Forma Cap Rate: 7.14% 

Cash on Cash ROI: 2.27% 

Purchase Cap Rate: 8.73%

Do you all think its worthy of continuing to pursue further? Am I missing anything big?