Analyze this potential Mulifamily Deal

[Stone G.]

This is a 4-unit multifamily complex, the owner who lived in one of the units passed in October and the daughter is now selling it. From the pictures it looks like 3 of the units are in good shape, the owner’s unit just needs new flooring due to the dirty pink carpet it currently has now and maybe some paint. Their agent did not list pictures of the 4th unit so i have no clue how it looks in there. The numbers are:

Asking Price: 240,000

Property Tax: 5,500

Landlord Insurance: 3,500 (this is the one and only quote I’ve gotten so far still woking on more)

FHA Loan with 5% down, so to be conservative lets say i bought the house for 230,00

Down Payment: 11,500

Rents are well below market for the top two units (2bed/1.5BA)

Rent:$640

Market: 915

4th unit

Rent: 500

Market:675

Owner’s unit is 2B/2BA

i would rent out of one the rooms the first year of the FHA loan and live in the other so lets say rent for the one room would be $550

Id plan on slowly raising rents over the course of months due to the tenants being on month to month leases. Once the rent reaches market level I’d get them to sign year long leases or find new tenants willing to pay market price. 

Thoughts?