Thoughts, comments, or concerns about this deal.

[Zachary Dosch]

I have everything ready to put in an offer on a 12 plex in Bismarck, North Dakota (where I live) today and just wanted to run it by my brothers and sisters on bigger pockets before I pulled the trigger. Truth be told, Im still on the fence about this because Im 25 and already purchased two properties last year.

Here is what I am figuring for cash flow:
11 2 bedroom units at $700 $7,700
1 1 bedroom unit at $550 $550
Total rents $8,250
Additional Income $450 (Washing Machines and extra storage unit)

Utilities $983
Insurance $335
Taxes $833
Onsite Manager $400
Repairs/Maintenance $250
Positive Cash Flow $1000
Net Income $4899

$4899 will support just under $750k in debt a month. I will be financing the entire ammount (20yr 5.125%) and offering an empty lot worth 300k as collateral.

The place is actually listed at $995k but the realtor is a complete rookie. The vacancies are near 0 in Bismarck due to the oil field boom in western North Dakota. Rents are rapidly going up and the $700/mo could easily turn into $800/mo within a year.

I know the deal is tight but do you guys think its worth it? The ability to own a 12 plex while not putting any money down seems like a great scenario to me but I know that its going to make my cash flow a lot tighter. It is such a sellers market in North Dakota that this is literally the only multifamily unit on the market as of today. It has actually been on the market for two weeks due to the rediculous price and rookie realtor which just rarely happens anymore. Part of my issue is how to get the realtor to take the deal to the owners and have me explain why I am offering what Im offering.

Part of what they aren't understanding is unless a cash deal comes along, this is going to be the next best deal because this property isn't going to appraise for much more so nobody would be able to finance it.

Thoughts, comments, concerns about this deal?