so I ran some numbers on it and this is what I came up with. 2 Units/2480 sqft Purchase Price:$99,000Asking Price:$80,000ARV:$150,000(if everything is new) Closing Cost:~$1600Gross Rent:$1600/M Vacancy:5%Operating Expenses:$663/M Cash Flow:$470 ($235 per unit) Cap Rate: 12.9%Cash in cash:58.8%If any addition info is needed or if I’m missing anything please let me know but so far this is what I got...Deal or No deal?? 

That said, here's some things to think about (i.e. what keeps me up at night)...In downturns people lose jobs, that could mean increased vacancies or below market rents to keep the property occupied. 

We have always avoided the brunt of economic downturns and have about a 2% vacancy rate.

We plan on implementing professional management, charge market fees, do some aesthetic updates to the property, and do a rebrand/relaunch as a premiere multifamily asset in a true "main on main" location.The underwriting is very strong, even with assuming high vacancy in the first year while we bring down units online and in the event not all 12 owners want to stay on as renters.

Legally we can charge 2 months deposit for unfurnished and 3 months deposit for furnished but the local market does not and therefore if you tried to do so you would have more difficulty renting (but with a vacancy rate of 3% you likely would still get it rented but it would take longer/more effort).I suggest when you do your rent analysis that you also look at what the standard move-in costs are and that you do similar to what is standard for your market.Good luck

One where you can refinance out 75% of the value and still get the cashflow you want after accounting for vacancy, cap ex, etc. 

Fortunately, BP has taught you to be a smart investor, and you also set aside 25% of the rent each month for vacancy, repairs/maintenance, and capital expenditures.

We want to get the best rent possible but also want to limit vacancy time as much as possible. 

(considered refinancing and renting it out but after refinancing and costs we'd be losing money each month  with 7k mortgage+2k in expenses per mo with about 8k per mo in rent, plus don't want to worry about vacancies with such a high mortgage). 

What do you factor into your analysis for average vacancy on the property?