Help Analyzing a 4plex

[Devin Scott]

I am looking to buy this 4 plex. Am i missing anything with my numbers? How does everyone feel about the offer price? There are no comps in the area for a 4plex. 

Asking price: $159,900

Offer price:$130,000 w/ seller holding note for 20%

Gross Rent: $2200

Cap X: 220

Maintenance: 220

Vacancy: 220

PM: 220

Tax and Ins: 150

Debt Service: about $700/mo based on 5% interest on $130,000

My intent would be to offer $130,000 and have seller hold a loan for 20% of that. I would get 80% loan(from someplace yet to be determined.)

Cashflow: $470

The 4 units are rented. I have no due diligence yet on any rehab costs. I know that it is at least rentable since all 4 units are rented. The outside seems fine, with no noticable repairs.  

Any advice is appreciated. 

[Aaron Thivierge]

Lots of thoughts on this (and I don't mean to offend, just offer my insight): 

Where is the "other" 80% coming from?  You have no skin in the game.  You are borrowing money from the seller to show the bank you have a down payment, and you are borrowing money from the bank to pay the seller.  This is not conventional nor creative. 
 
Your property taxes and insurance allocation looks underestimated.  I would use your local tax estimator or tax records to review the actual tax figure/ year AND call your insurance company for an actual quote on insurance for the year. 

I plugged all your given numbers (though they should be verified) into the BP buy and hold calculator, and that 4plex property will cash flow $94.57/ month divided by 4: so each unit should yield you $23.64/ month in cash flow. 
I assumed you'd be paying back the seller carried 20% ($26,000) at 5% for 5 years with a payment of $253/ month.   
Have you looked into a FHA loan on primary occupancy dwelling (duplex, triplex, quadplex). But, don't forget about your reserves, repairs initially to get rent ready the other units.

My interpretation is this deal is a poor choice unless there are other variables not mentioned.