12 Unit Multi-Family - What are the things to consider?

[Michelle Shriver]

The seller is asking $749,000 for this property, the tax assessor has it at $627,100,  I've analyzed it at $600,000.  It needs some exterior work, and what appears to be a minimal amount of interior work.  I've only been in 4 units, of course I'd need to see all 12 and have the appropriate inspections.

Though I've analyzed it as a cash deal, I would get financing for it, 65-75% of the price up to 7.5% interest rate, though hopefully lower.  

I don't think it will appreciate much, my primary interest has been cash flow which I don't think I'll get much of after financing.

Any thoughts or additional things I should consider I would love to hear!

Monthly Income: Monthly Expenses:	Monthly Cash Flow: Pro Forma Cap Rate:
$12,833.00            $8,050.05	$4,782.95                    9.15%
NOI Total Cash Needed	Cash on Cash ROI Purchase Cap Rate
$57,395.44            $638,400.00	8.99%                           9.57%

Property Information

Purchase Price:  $600,000 

Estimated Repair Costs:  $30,000 

Total Cost of Project:  $630,000

After Repair Value:  ??  

Property Description:  12 - 3 bedroom 1 1/2 bath, Section 8

Rent Total:  $12,833.00

Vacancy - $1,283.30 (10%)

Repairs - $1,026.64 (8%)

CapEx - $1,026.64 (8%)

Water & Sewer - $355.00 (3%)

Electricity - $180.00 (1%)

Garbage - $210.00 (2%)

Insurance - $1,208.00 (9%)

Property Taxes - $805.17 (6%)

Flood Insurance - $447.00 (3%)

Lawn - $150.00 (1%)

Termite Contract - $75.00 (1%)

Management - $1,283.30 (10%) 

Total - $8,050.05 (63%)