Help me evaluate this deal

[Jaime Wright]

I’m evaluating this 5 unit building in Milwaukee Wisconsin. The building is currently rented at $2525. It has 2 - 2 bedrooms and 3 - 1 bedrooms. Building seems to be underrented. My CASHFLOW doesn’t seem LIKE MUCH OR NEGATIVE. I’m going TO OFFER $125K and do $15K UPGRADES. Mortgage - $1310/mth (30 YRS, $140K, $3600/YR, $1500/YR, 6.5%) Taxes - $3600/yr Insurance - $1500/yr Utilities - $425/mth (owner pays heat and water) (verfied by Weenergy and Water works) Property Management - $375/mth Repairs and Maintenance - $650/mth Cap Ex - $300/mth THEREFORE, INCOMING -$2525 MORTGAFE - $1310 PM - $375/MTH UTLITIES - $425/MTH RM - $650 CAP EX - $300/MTH Balance is NEGATIVE -$535 PER MONTH. Looking for POSITIVE CASHFLOW OF AT LEAST $500/MTH. What would you offer?