Need help analyzing a possible multi-family deal

[Jim Francis]

Hello. I wonder if anyone could help me to analyze a potential deal. Here are the numbers . . . is this a good buy? Thank you.

8 plex being offered at $420,000

The seller is offering:
Flexible Terms !!
Possible 10% cash back at close
Owner will carry!!
10% under market value!!

WHAT DOES THIS MEAN TO ME??

Price/ Unit $ 52,500
Price/ Sq. ft $ 74.46

Rental Income
Scheduled Rental Income 48,000.00 ( per year)
Vacancy (0%) 0
Effective Rental Income 48,000.00
Service and Other Income 1,615
Effective Gross Income 49,615.00

Operating Expenses
Utilities: 4,320.00
Repair & Maintenance 1,300.00
Turnover Costs/ Cleaning 3,000.00
Taxes 2,568.00
Insurance 1,750.00
Total Operating Expenses 12,938.00

Net Operating Income 36,677.00

Debt Service 22,884.00
Cash Flow 13,793.00
Cash Flow/ Month 1,149.42/mo
Cap Rate 9.178%

4 2-bedroom units rent for $550
4 1-bedroom units rent for $450

Can anyone help me figure out if this is a worthwhile deal? Thank you all.