16 Unit Multi-Family Deal Analysis - 1st investment

[Curtis N.]

Hi everyone - I have been looking for my first investment for some time now. I finally found something that looks good (to me) but wanted to get others' thoughts.

It's a 16-unit apartment building located in a pretty good area. It was built in the 70's and was remodeled about 5 years ago. It's not distressed so one of my main concerns is if the numbers they provide in the listing are correct, why are they selling?

I have only seen it online, it's not close to me so I'm just going off their numbers for now. They say it's fully occupied and everything is in move-in ready condition. No fixing up needed.

Purchase price = $644,000
Units = 16
Occupancy = 100%
4 x 2BR @ $580 / month
12 x 1BR @ $490 / month

Monthly rents = $8,200
Yearly rents = $98,400
NOI with 50 % rule with 8.3% vacancy = $49,176
Includes cost of PM @ 12%

20% down with loan at 4.3%
Cap rate = 7.6%
Cash flow = $18,763 ($130 per door per month)

The NOI they have in the listing is slightly higher which makes it an 8.25 cap. I overestimated the expenses to 50%.

CoCr is 11.66% and total ROI is 17.06% based on my calculations.

This seems relatively turnkey and I wasn't sure how good these numbers were for a turnkey investment.

I am ready to put my money into something and I am having a hard time finding something where the numbers make sense. Any help is appreciated!