Feedback on numbers for 8 unit CT multi-family?

[Dave A.]

Hi All,

After a couple years of research, I'm finally comfortable that I've found my preferred niche' in commercial multi-family and I'm ready to make my first purchase. Big problem: no multi-family in my area and low ROI in general. Solution: neighboring states.

I've not verified these numbers that I've received from the broker yet, but the annual expenses seem low to me. Any and all feedback will be greatly appreciated. Not only opinions on the numbers for this specific deal but also advice as to the best rules of thumb to use for vetting out the potential duds would be great.

Sales Price	$525,000
Loan Amount	$420,000
	Down Payment	$105,000
Interest Rate	4.60%
Loan to Value	80.00%
8 Units (7 Apts/1 Retail)	Term Mo.	360
Gross Income
Total	$108,000
Gross Income	$108,000
Residential Vacancy 10%	$10,800
Capex 5%	$5,400
Total	$16,200
Effective gross Income	$91,800
Expenses Annual Figures
R/E Taxes	$8,640
Insurance Premium	$4,200	(Estimate)
Maintenance	$5,400
Water/Sewer	$2,220
Gas Heat	$3,530
Common Electric	$350
Management	$5,130	(5% EGI)
Garbage	$1,105
Total Expenses	$30,575
Net Operating Income (NOI)	$61,225
Principle and Interest Pmt	$25,837.28
NOI/PI	$25,837.28
Debt Service Coverage Ratio	2.37
Monthly mortgage payment	$2,153
Net income after mortgage	$35,388
Return on investment (ROI)	33.7%
Cap rate	11.7%