What am I missing here. Multi Unit Property

[Rory Boone]

Here's the deal. I have 4 Unit Property I bought back in Dec of 2012 located in lower income area ( not a war zone) in the South Suburbs of Illinois very close to Chicago. Most flippers are not buying properties in this area due to the lack of comparable comps and high property taxes. But here's the thing I ran my numbers with the high taxes on the deal and it still had nice cash flow on the deal. Plus the property is located in lower income area but it right across from the police station. The location played a major part in me purchasing the property as it minimizes the level of problems that I typical will have to deal with with it being in lower income area. The property has a complete unfinish basement and a added on room that attached to one the units which provides the opportunity to convert the 4 unit to a 5 unit. The add-on room has fireplace so I was thinking to convert that to a 500 sf studio.

I have put about $25k into property already to get two units completely renovated, update/separate the heating systems in all units, replace some windows, install security doors and some roof repair work on the garage and the building.

Property will rent for as follows:

3 2-Bedrooms will rent at $ 800.00 monthly $ 28,800.00 annual
1 Studio $ 550.00 monthly $ 6,600.00 annual
1 2-Bedroom bigger unit $ 850.00 monthly $ 10,200.00 annual
$50 a month $600 annual for garage parking

Total Annual Revenue $45,600

Conservative Vacancy loss 13%
Management 10%
(I plan to manage the property myself but still included the management %.)

Operating Expenses:

Insurance $208.33 monthly $ 2,500.00 Ann
Lawn Care $ 100.00 monthly$ 1,200.00 Ann
Pest Control $ 20.00 monthly $ 240.00 Ann
Trash Pick Up $ 59.00 monthly $ 708.00 Ann
Misc. Repair Main. : $ 120.00 monthly $ 1,440.00 Ann
Taxes: $ 833.33 monthly $ 10,000.00 Ann (plan to appeal)
Water: $360 monthly $4,320.00 Ann

Total Expense $20,408.00

To finish up repairs and the leave the property as a 4 Unit. (minus studio)
Rehab cost is about $45K. 10% interest only debt ratio 2.28
Monthly Cash Flow $475

To finish up repairs and convert to 5 Unit.
Rehab cost is about $70K. 8% fix int debt ratio 2.39

( I would prefer to take $20k out of what I put in if I convert it 5 unit which make my loan amount $90K) 8% fix int debt ration 1.93
Monthly Cash Flow $605

The only Multi-Unit (2- 4 unit) that has sold in last 3 months that's within 1 mile radius of the property is a 2 unit for $140,000.

I would think my property would be worth at least that after repairs seeing that its twice as many units.

PS: I have a tenant ready to rent one the units out. City however wont allow me to rent the property until it passes inspection. All repair work must be completed to pass inspection.

What am I missing.. Why can't I getting Hard money lender or private funding on this property... Maybe I am presenting incorrectly.. IDK O_0

All feedback or comments are welcomed. Thanks