Analyzing an apartment complex deal ?

[Johnny Khoury]

I need help analyzing this deal. to see if its worth it. my first time buying an apartment complex and not sure what to look for?

PURCHASE

Purchase Price: $ 499,900

Amount Financed: - $ 399,920

Down Payment: = $ 99,980

Purchase Costs: + $ 9,998

Rehab Costs: + $ 0

Total Cash Needed: = $ 109,978

Price Per Square Foot: $ 66.7

Price Per Unit: $ 62,488

RETURNS & RATIOS

Cap Rate: 10.7%

Cash on Cash: 17.3%

Return on Investment: 3.4%

Internal Rate of Return: 3.4%

Rent to Value: 1.3%

Gross Rent Multiplier: 6.5

Debt Coverage Ratio: 1.6

FINANCING

Loan Type: Amortizing

Loan Amount: $ 399,920

Loan to Value (LTV): 80%

Loan Term: 20 Years

Interest Rate: 6%

Loan Payment: $ 2,865 Per Month

$ 34,382 Per Year

ASSUMPTIONS

Vacancy: 5%

Rent Collection: Monthly

Appreciation: 3% Per Year

Income Increase: 2% Per Year

Expenses Increase: 2% Per Year

Selling Costs: 6% of Sales Price

Land Value: $ 0

PURCHASE COSTS

Total (2% of Price): $ 9,998

REHAB COSTS

Total: $ 0