I'm looking at a set of 15 duplexes for sale all together.  I've gotten a pro-forma from the seller and it looks like an 8.6% cap rate.  They were all built in 1964 and most are currently rented.  

I was hoping to shoot for a 12 cap rate, putting the purchase at 1.4 million and I'd like to gather a group of investors to go in with me.  What things would you guys advise me to look out for?

Hey, I would reach out to local property management companies to see what it would cost to manage the portfolio. Also, in order to achieve a win-win for you and the seller, see if they would be open to seller financing so you could afford a higher purchase price. Other than that, inspections to uncover deferred maintenance.

Thanks Rob,  Good advice.  I was also thinking along those lines. I already have a property manger in the area that I use and she's good at keeping things full and knows the rental prices really well.  

What state are these located in?

Look over the actual performance for at least 2 years (3 years is better).  Proforma numbers are pie in the sky.  

Hopefully the owner kept good records, many don't.  What was the vacany rate over a longer period of time, the maintenance records etc.   

Good luck, kinda of envy you for finding a nice package.

Well, as it turns out, the owner has 3 offers out on it. I don't want to chase the top bid on this stuff.