Hello BP! I am hoping you can help me analyze this deal. On paper my numbers are okay-good. It's my first multifamily purchase, and I am in the process of working up an offer on four duplexes. Here are the details:

Currently asking $84K per duplex

Comps for similar duplexes range from 90K-125K per duplex.

Estimated mortgage: $1259 per month. (4.8% interest, 30 year mortgage, 25% down based on an offer of $80K per duplex)

Taxes are: $300 per month (based on 2016 tax assessment)

Insurance is: $236 per month (quote from insurer)

PM@ 10% $400 (I currently self manage)

Maintenance @10%: $400

8% Vacancy: $320

TOC: $2915

All Units are currently rented at an average of $500 (some units have long term tenants and the rents have not been raised in a while)

Total Rent Revenue: $4000 (We plan to rent the units for $525-$550 once the current leases expire)

All units have newer HVAC units and come with (older) appliances. Units all will need roof updates soon. Estimated money for immediate repairs/updates is $30K (roof and some flooring, painting, small repairs)

Average rent for a 2 bedroom unit is $600 so these units have room for a rental increase. Also there is a new shopping center in the works near this street, which is currently a dead end. Eventually they will connect this road with an access road to the shopping center (positive near to new shopping and restaurants, negative more traffic) The area is currently a C+ area with some single family homes to the left of the property, and a small apartment complex to the right.

The purpose of the purchase would be a buy and hold with positive cash flow. Based on my estimates I'm looking about about $1100 per month cash flow with a little over a 11% Cash ROI

Am I missing anything? Typically I try to follow the 1% (though I try for 2%) rule and these would meet that.

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Help Me Analyze This Deal (First Multifamily Purchase)

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