Apartment complex advice/Lendor Help

[Stephen Murray]

Hello BP-

I have recently been talking to a seller about a 9 unit apartment complex in Eastern North Carolina.  It is all one story, with washer dryer units in each unit, and parking directly in front  of each unit, so he has never had trouble renting them and currently has a wait list for tenants.  I am guessing they are extremely attractive to elderly tenants.

Here are the numbers.....

Yearly Rental Income: $37.8k now with undermarket rents.  Potential for a little over $40k

Expenses(insurance, taxes, maint, prop manag):  $11,380 with current rents or $11,650 with raised rents.  Both of these expenses are higher than the expenses reported by seller, and I could also manage the property myself which would cut costs big time.

Returns after expenses:  $26,420 with current rents.  $28,350 with potential rent raises.  Both of those numbers include property management, which might not be needed.

Purchase Price: 195k, but I believe I could get him to come down.  

Question #1.......is this a good deal?  By my calculations it is, but I could obviously be missing something important.

Question #2....Would a commercial lender loan on a deal like this or is it too small of a number?  I could probably put down 20k.  Would trying to find private money instead be smarter?  

Any help or advice on how to find funding would be great.  Thanks.