5-Condos Deal Analysis. What Would you do?

[Nate Wilson]

I found an investor who is looking to get out of the business and wants to sell 5 condos. He wants $425,000 for the 5 and generate $5570 income. 2 of them the rent could increase a little $50 each. They are all rented at the moment. Here is the break down

Monthly Income: $5570

Monthly Expense:

Taxes: $593

HOA: 1250

Vacancy: $278

Cap Ex: $278

Managment: $445

Mortgage $1,559

Total: $4,681

Monthly Cashflow $889

Cash on cash return of 9.61% with 25% dp

He said the HOA fees are increased this year and will go down next year for a total of $1000. This calculation is with the increased fees. HOA covers insurance, water, garbage, sewer, and snow. If the HOA fees drop that will put me at $981 monthly cash flow and 11% cash on cash return.

What do you guys think? I do plan on talking him down and hope to buy it for around $400,000. Did I miss anything?