Roofs need to be replaced in 30 years, water heaters in around 10, etc.

All new kitchen, baths, roof etc. as we turn a 3/1 ( bedroom, 1 bath) into a 4/2.

This really seems a bit steep in today's interconnected world.

It kills me when I hear stores of RE investors hiring GCs to rehab or repair homes and paying through the roof for the work, literally..

Property is a 5 unit building and generates $480 per unit, $2400 monthly, $28800 annually.Annual taxes:  $2400Annual insurance:  $981Owner pays water/sewer/trash (I don't have those figures yet)Roof is new.  

Newer Trane HVAC, Newer Roof, gutter guards, Etc.

(BS meter through the roof.)Armando event- ha that's funny Jay!  

Other than actual numbers, CAP rates, and obvious market risk factors e.g. area is a war zone or the roof is covered with a tarp etc., what factors or metrics are "essential" to making a smart multi-family real estate investment decision?

My friend just told me he pays HOA fees, and he was STILL assessed $10K for a new roof!  

Basics of the deal:Asking $750,000 with seller to owner finance with $25,000 depositGross income - $111,000Taxes - will be 3.7% of actual sales priceInsurance - $7,000Utilities are $7500 Assuming 5% vacancy rate and 10% repairs (property has had recent maintenance work and new roof and parking lot and nothing that appears imminent)Assuming 7% property management (which is average for our area) although we will self-manage at first although I know that we need to consider it in our analysisThe numbers don't work at their asking price.We'd like to offer $625,000 at 6.5% interest for 30 years, balloon after 20 yearsThe cash on cash return without the property management is 27% but with the property management, there is potential for negative cash flow in years with high vacancy and repairs.