Here are the numbers: sixplex in hickory NC Price: $160,000Gross monthly Rents: $3,050 (definite possibility to raise rents by about $25-50 each) Expenses: (50% rule for now): 1,525 NOI: 1,525Cap: 9.5%Debt service: 25% down, financing 120k @ 6% amortized over 20 years, with a 10 year balloon. $860/month Net monthly profit: $665Cash on Cash: 19.95%Any thoughts on this deal?

I think the agent simply took market rent, applied them to all units, and used one of the R&M rules to come up with his number2. property manager listed no rent income for 6 months straight and suddenly for the very last month on paper there was an income of about 2800 dollars. this made me doubt if the entire income and expense reporting was accurate3. owner did not provide tax or insurance numbers - the listing agent estimated them...I also heard from the selling agent that one of the bigger units will be vacant from next month, due to eviction of tenants from rent delinquencies The owner is out of state and seems clueless on the operations of this building.

Are there same rules in Provo?

If 2 years or more, it should be a positive cash flow, which improves DTI.

I've already started a corporation for my home improvement business.

It may be worth it to talk with the tenants and find out if there is something that could be worked out to keep them to stay if you didn't have any concerns with them while also adhering to your rules.  

As I bring on my subs, I can see improving this and finishing quicker.

John Sheil Using the equity you pull out as a down payment will both help you improve your return on investment and leverage into better properties.

My first thought was a flip, but from what I could see in the property, no improvements have been made.

Keep in mind that you are still buying into an HOA and you will be bound to their rules - with one company/developer having a majority interest/control, you may not like the decisions they make in the future but would still have to abide by them.