help with quadplex deal

[Chris Eidson]

This is my first attempt at a multi family. I used my SFH spreadsheet and here is what I came up with. My biggest concern is that I can't find good comps, so I don't know if my purchase price is too high.

1. Target purchase price $200K

2. Rehab budget $40K (2 units are occupied and the others need minimal to be rent ready, but I would probably need to upgrade them to get market rent.  Two rented units are $600 and market suggests $725 each.

3. Assumptions are 10% vacancy, 10% maintenance/cap ex, 10% prop mgmt.

4. Financing is 25% down, 4% on a 30yr fixed.

5. My COC return is 10.7% with 13.48% total ROI 1st yr, cash flow is $847/mo (at market rent)

I can certainly drive up my COC return if I can cash out refinance after I get it rehabbed. It does not cash flow with current rent and vacancy, but the rehab of the vacant units is less than 30 days. I should be able to get to positive cash flow within 60 days.

Would you do this deal?