How to present offer for MY FIRST DEAL (Multifamily)

[Walter Hammond]

I am looking at a 4-plex in Cincinnati, OH. It is an REO, so totally vacant. It is in a good part of town for rentals. 2-2BDRs and 2-1BDR's. There are 2-2car garages, so I can rent the 1BDR's for $500 and the 2BDR's for $600

Income: $2200

My Expenses
Taxes: $373
Insurance: $75
Water: $220
Trash: $42
Gas & Elect: $280
Maintenance: $108 ($325 per unit, per year - I just picked that number)
Landscaping: $25 (small yard, less than 10'x 20', mostly winter snow removal driveway & walkway)

I got these utilities by getting rates from a sister property that is fully occupied and has the same layout. gas & electric will vary depending on the heating system I put in place.

Rehab Cost:
Approximately $20,000 - $25,000

Options and variances are because copper was removed from basement. Copper from water main to boiler and all of the radiator units in each apartment unit.

So we can either:
1. repair each radiator
2. Replace radiator with baseboards and include new electric wiring (the electric system was updated by last owner, so all electric is up to date (saves me $3k and all windows were replaced as well in the entire building)
3. Negate the boiler and install 4 separate furnaces and run ventilation to where the OLD radiators were.

The reason I'm vouching for 2 or 3 is because it gives the tenants the cost of heating their own unit reducing my expense, but giving them control of how warm or cool their unit is. Also here in Cincy, there are NOT many technicians who work on boilers so the maintenance cost are pretty steep. I also think this helps "future" proof the building and makes it easier to sell.

Holding Cost: $3,000

This is based on figures that it takes 90 days to fully rehab and get 100% occupancy along with marketing and any random miscellaneous things that come up.

The list price is $84,000. I'd like to present an offer, that shows a sort of line item rehab displaying the breakdown of $25,000 rehab and explains why I'd like to offer $55-60k for the building.

Income of $2,200
Expenses: $1,093
at a 10% vacancy rate, NOI = $ 887

Does this make since? Am I on the right track? Has anyone presented an offer like this to a bank? Lastly, I don't have a down payment. I'll mostly be financing at a high 8% HML or using a home equity line of credit on my grandparents home to cover a 25-30% down payment for a conventional loan.

I know this will keep me with a small cash flow, but it'll give me something, help build some credit and allow me to pay down principle on a building that should be $100k market rate with 20k in equity. This way I can keep and pay down. OR I can sell to an investor, and maybe make $5-10k in a few years. Any advice is welcome (sorry if I put in too much info).