Analysis Paralysis Keeping Me Back

[Samuel Coronado]

I am on the fence about my next buy. It's a small 5-unit with everything individually metered. Rents are roughly 2100 a month gross with 4 out of 5 rented. Super low and definitely below market. We're looking at coming in at $134k and raising all rents to a minimum of $700/month with an exception for someone who can be an on site handyman. 

Mortgage would be roughly 1300/month with insurance and taxes (before repair estimates). All models are late 70s, early 80s. It'd be roughly 30k in closing costs. I'm estimating 500/month for capex based on other parks I own of similar size and age, but I am not sure what's holding me back from pulling the trigger. It would be a 1700/month net at 700 x 5 - 1800. Over the course of the year, it would be over 60% return and still cooking for many years after. 

This would bring my total units up to 14. I love small mobile home parks better than SFHs. What does the group think about this? 

[Michael S.]

@Samuel Coronado - your hesitation tells me that you think the CapEx is going to be much higher than you're estimating - were you able to walk every unit? Age of the HVACs and roof? Where is the 5 unit located (not the address, just what general area)? Honestly, just from your description, I will bet the CapEx will be higher than you estimated.