10 UNIT APARTMENT CAP RATE GREAT BUT HIGH FIXED COST HELP!

[Henry R.]

Hello BP Nation,

I would like your thoughts on this please.

I took a look at a 10 unit for the first time. It's a brick building built around 1920. It has been rehabbed some time ago has sheet rocked walls, breakers, carpet, etc likely completed in the very early 90's. Needs some work to 3 of the vacant apartments. right now rents are 4500 per month fully rented 6500K per the owner this is accurate. 5 units are 2 bed rooms, the other 5 are 3 bedrooms. Rents are a little low from 650 to 750. Outside needs some brick work in a few places (pointed up).

Tenants pay own heat and electric ( forced hot air) Flat tarred roof. The cashflow is low for me at 1300 or so. Good connection with the owner wants to sell to to do other things, no time, tired etc. Mention a few times knows it needs work would like to get 350-400K, however I would not pay 350K. High taxes and water/sewer. The numbers look great, however I don't really like the overall numbers. Am I missing something?

Thanks, see link below.

https://www.biggerpockets.com/calculators/shared/136829/c09ed519-32e0-4c24-98e2-d6f494b54e00