Please help - cash pay 4plex or just invest in syndication?

[Wilson Lin]

Please help, I am considering an investment in a 4-unit university type housing in Col umbus .  I'm not a PRO member, so I can't post the deal analysis, but here are the details:

$350k purchase price

$2500 in deferred maintenance I'd address now

Closing costs $4200

7% capex

7% maintenance

5% vacancy

11% property management (actually 8%, but after all the tenant placement fees, assuming 3 new renters each year, I assume closer to 10-11%)

Misc expense ~125 - lawn care and snow?

Insurance:  $1200 annual

Property Tax:  $4200

If I left all my cash in there, I'd be cash-flowing ~ $20k/ year, but CoC only 6-7%

Results with a loan vary, depending how I fudge the numbers a little.  I could do a delayed financing loan to cash out 70% and re-invest.

Cash flow with a loan is ~600 - 700 / month total, and I'd only be getting 5.9-6.8% CoC return, depending on a few variables.

It seems to me that it is not worth to trouble and effort for this low return, except if the area is anticipated to appreciate significantly in the long term.. which I'm not sure about Ohi o.