30 Door Multi-Family Break-Down - Is this a good deal?

[Chad Emerson]

Looking to buy our first multi-family deal.  I own a commercial construction company so can do the rehab in-house. Here's the breakdown.  Trying to see what I'm missing here.

Category	Amount
Purchase Price	$550,000
Rehab Budget	$185,000
Closing Costs	$17,000
Total Project Cost	$752,000
Effective Gross Income	$168,120
Operating Expenses	($60,000)
NOI	$108,120
Debt Service	($48,852)
Annual Cash Flow	$59,268
Monthly Cash Flow	$4,939
Cap Rate (on cost)	14.4%
DSCR	2.21
Cash-on-Cash Return	31.8%

[Corey Beliew]

@Chad Emerson
Your OpEx at $60K (around 36% of EGI) feels a little light for a 30-door property. Even with efficient management, taxes, insurance, maintenance, and reserves usually push closer to the 45–50% range in most markets, Fayetteville included. Might be worth running a "what-if" scenario at that level just to see where cash flow lands. The rehab number looks great if it's mainly cosmetic and you're handling it in-house — huge advantage there. If any major systems (roofs, plumbing, HVAC) are due, you may want to pad that line item slightly. The DSCR and Cap Rate both look strong — even if expenses came in higher, you'd still have good breathing room. That's a sign of a solid deal structure. I'd also run a quick stabilized value check. If the ARV lands around $1.1–$1.2M post-rehab, you could have a great opportunity to refi and pull out most of your initial capital.
All in all, this pencils really well. Tighten up the expense assumptions, confirm your stabilized appraisal, and it looks like you’ve got a nice value-add play here. Great find.