Offer advice on a 9 unit bldg

[Shawn Blount]

I have the opportunity to purchase a small apartment complex. Current ask is $275K.

Total income for the complex is stated at $34,905, total expenses are stated at $17,388.40. I have only been given a basic breakdown of expenses-taxes, insurance, utilities and maintenance.

For my area, the rents are only somewhat low. The units are very basic but, from a cursory glance, appear to be in good shape with the recent improvements.

Rents could be increased, but that would be my responsibility. Market rent would probably be only 12 percent higher based on surrounding properties.

My lenders are offering a 5/20 at 4.25% or 10/15 at 4.75% with 25% down.

Any suggestions on an offer? Or advice on which loan makes the most sense, balancing cash flow with the direction interest rates are headed?

Thanks in advance