Dothan, AL. 8-unit deal. Need extra eyes/opinions.

[Donnie M.]

I am close to getting an 8-unit in Dothan, AL under contract for $160,000.  Seller will allow me to put 20,000 down and I'll have 1-year to pay off the 140,000 at 6% interest only (700 a month for the interest only payment).  What do you think of this deal?

Estimated repairs: $40,000 and I like to include a fudge factor $8,000 for $48,000 in all.

Each unit is 2 bed 1 bath and 1000 sq ft.

3 out of 8 units are occupied with two probable evictions.  Current rent is $425 and I believe market rent is $500.

Utilities are separately metered for water and electric.

HVAC units are 10 - 12 years old.  Roof less than 5 years old.  Property is about 30 years old.

C class neighborhood.

Analysis once I get it stabilized:

Rent: 4000 (8 units renting 500 each)

Property Taxes:  150

Insurance: 120 (based on it insuring it at 200,000)

Trash: 80.  I am probably way off on this one.  Would you go for one or two dumpsters on an 8-unit?  I will call trash company tomorrow.

Property Management 10%: 400

Vacancy 8%: 320

CapEx 5%: 200

Maintenance/Repairs 10%: 400

Principal+Interest (after refinance of 20 yrs at 6% for 210,000): 1500

NET NET Cashflow of 4000 - 3170 = $830 for about $100 a door.

I estimate I will have about 5 - 10k left into the deal when all is said and done so I should theoretically have most of all my cash back out of the deal in a year after the refinance.

Thoughts?  See anything I'm missing or have terribly miscalculated in your opinion?  Thanks in advance for the help!