Is this a deal? First time analysis!

[Christopher Lee]

Hey all,

I'm looking at multifamilies and I came across this $135k property. It has 9 units that gross $3600. Some of these are duplexes while others are separate buildings. I believe this would be considered a Class C type.

I did the initial calculations and I got ~20% COC. I have since made my costs extremely (I hope) conservative and still end up at ~11% COC. I bumped up maintenance from 2018 actuals ($9000) to an estimated ($13,000). I bumped up vacancy from the normal 5-7% to 14% as one of the units is vacant. I also put in sort of a random 10k in rehab costs and didn't increase the ARV. I threw in $100 monthly landscaping though not sure if they really need it. I plan to have a PM company oversee this

My biggest fears are

1)  I don't have the standard $100/door per month here. I have it $41 per door, but still cash flowing ~$350. Is this a red flag? Am I overextending myself?

2)  Since I'm out of state I'm budgeting in a PM at 10%. Will it be more? This is definitely a lower end rental

3)  Maintenance, I'm putting a lot of budget for this, is this normal?

4)  Are my rehab costs too low? There are 9 units.

5)  Are there expenses I'm missing? 

[Dennis M.]

@Christopher Lee

Eh ..I would go look at the property . This looks like it may be a marginal deal located in the hood . Big red flag is really low rents and only getting 41 bucks a door