Help me analyze this deal

[Lawrence Smith]

I walked the property today and currently am working on getting it put under contract. This is a 6 unit building in Washington, DC, with a current NOI of $53,000. The current owner has only 4/6 units occupied and rented for well below market rent avg of $1600 a unit. My intention was to make this subsidized housing and rent each unit $3872/ monthly, which is 100% government paid. I believe my biggest obstacle will be relocating current tenants to different housing.

FYI in order to get that type of rent I would need to convert each unit into a 3br which is very doable, I am estimating $300,000 in repairs to do this. Otherwise if units stay 2br units which they are currently the government pays $2872. If I am missing anything in my anaylysis BP family let me know. 

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