16 Unit / 7 Property Deal analysis help? Please?

[Daniel Whiddon]

Hi all! I havent posted in awhile due to rehabs, but I have had the opportunity lately to settle and start picking up more property. Another landlord in the area wants to sell all 7 of his properties, for 16 more units. Im currently at 8 units, but im not sure that this deal is as good as I hope, and its a lot of money and risk so I wanted to reach out. This is a c class area, with some properties being in better neighborhoods than others. My current properties are already in this area so im familiar. My concern is that right off, its losing money, but has good potential in my mind if I can retrain the tenants or swap them out.

1 Quad, 1 Tri, 4 Dup, 1 SF

Purchase price: 420,000 @ 4% interest with 2 year call (possible extension for another year). Seller Financing with only 25000 down. This puts each property at roughly 60k, which is what im using as a basis to refinance or HELOC them out of the mortgage. One of the properties is a quad I can probably refinance or HELOC for 80% of 140,000, but some of the other properties should be priced at 30-40k. And although Im super hesitant to use this figure in my purchase decision, my realtor comp-ed them out at 750k ARV.

Last Years Actual Rent Paid: 62,777 
Last Years Gross Rent Billed: 109680 
Pro Forma Rent: 110,000 - 140,000 based on minor improvements/cleanup and then rent increases/tenant removal

PITI: 5500/month. (66000) P 1600 + I 1300 + T 2000 + I 400

Expected Vacancy and unpaid: 15% (16500)

Maintenance + Capital: 10% (11000)

Net currently: -4000 Net Projected: 31,500

Projected ConC: ~100% with 25k down and 6500 closing costs.

Thank you for taking the time to look at these numbers. I greatly appreciate it. Please let me know what you think and/or if I should update the post to be more clear or contain more information.