Experiences of a "Relatively" New R.E. Investor, Part Five

So, I thought I would be finished for awhile due to the fact that I'm currently deployed.  However, as luck would have it, I ended up finding another deal very close to the property I spoke of last time that I just couldn't pass up.  I'm set to close on a 4-plex at the end of October.

This property, another 4-plex, was listed for $70k on the MLS.  I offered $60k.  Seller countered for $65k, and I accepted.  Later, I came to find out that the seller's husband had recently died, and the seller had stage four cancer.  I truly believe this seller was motivated.  After obtaining the inspection report, I learned that the property was in great condition, though it needed a new roof and tuck pointing soon.  Its sad (maybe) to say that I couldn't, after learning about the seller's situation, bring myself to counter at a lower price to account for these defects.  Shame on me, but I figured I was still getting a great deal.    

Here are the numbers:

- Purchase Price: $65k (the appraisal came in at 70k)

- ARV: $110k-120k (estimated, I still do not fully know the true ARV due to the investor activity)

- Value at CAP Rate of 10%: $98.7k

- Down payment: $17k

- Expected repairs: $20k

- Rent: $1700/month

- PM fee: $170/month (10%)

- MX: $170/month (10%)

- Vacancies: $170/month (10%...the property management company is averaging 5%)

- Reserves: $85/month (5%...I may need to raise this as the building is 90+ years old)

- PITI (Loan Principal, Interest, Taxes, Insurance): $430/Month

- Cash Flow: $650 /month

- Cash on Cash Return: 16.8%

Another good investment that meets all of my criteria (other than the needed new roof/tuckpointing...).  I still feel like I am leaving too much on the table as an investor, especially considering the repairs needed.  But, I'm learning a ton, have found an amazing team (absolutely critical), and will continue to get better with time.  Man, I'm loving this!