Good or Bad Deal?

[Eric Bowlin]

I don't usually buy good quality properties that don't need work...So I'm a little hesitant.

5 unit building with 'bonus' lot of land with a very large shop/garage. Asking 234. My network and research leads me to believe he will go for 225 at the bottom

5 unit income - 2855/month,  

Garage income - 300/month

Total Income - 37860/yr

Expenses (yearly, actual)

Electricity - 275

Water/sewer - 1393

Trash - 923

Insurance - 3672

Maintenance - 600 (I have a local retired guy who already takes care of my other properties on the street for 50/month including mowing and snow-blowing. He just likes to stay busy)

Taxes - 2361

Estimated Expenses:

Repairs - 1893 (5% of rent)

Vacancy - 1893 (5% of rent..but is high..most tenants have been there for more than 5+ years..One has been there for 57 years)

Management - 0 (My wife and I manage our properties. Though  I could technically account for it...it's just money from one pocket to another.)

Total Expenses - 13010

NOI - 24850

Debt Service (25% down, 25 year) - 12084

Net Income - 12766

Cash on Cash return - 20.8%

Seems a little low for 5 units + the garage space...no?