As I've read all the posts and your responses, this is what I've heard:
Bp posters- It's an ok deal. Not a great area. Rents are market or above. There is some room for improvement in the building with capex. Look for something better.
You: I really want this property and am talking myself into buying it because I'm so close to getting where I want to be.
I can't tell if it's a great deal or not, but this is what I'm hearing when I read. I would say keep going over and over the worst case scenarios. It seems like wether you buy or not, you are learning a ton. Just try and control your excitement and don't talk yourself into the deal...lets the numbers do if.
Real life advice. As soon as you buy the place, 1 refrigerator, a microwave and some system will fail. It looks like you are factoring that in. The utilities in my area charge like $1000 in deposits...so remember that. Also, in my commercial deals, I couldn't roll in taxes or ins into my closing costs, so that was also out of pocket. Sometimes escrow uses rents and tax money to compensate for closing costs, but remember that you need this next month to make a payment. I just closed a few 10 unit blds and my note is a 20 due in 10, 4.125% fixed for 5 and 1.25 over prime fixed for 5.
Finally, I'm about to try and rent some places at market prices and when we sign the lease, let them know that they just pay a water/trash fee of $20 or something like that. It won't cover my bill but it will def help me - at a minimal charge to the tenants. You might try it too.
Good luck!
