Killer deal..... I think!

[Reggie Rearden]

So I think I've found an amazing deal. Its a multi-family unit listed for $240K. Its currently occupied at full capacity with tenants on a waiting list. The gross annual income is $57K. The total cost of expenses is $12K to include water, sewage, garbage, taxes, insurance. Tenant pays electricity. The lender said I can do a commercial line of credit to pull my down payment from. I have the deed to a commercial building that I would use for the Commercial line of credit. The line of credit terms are 12 months interest only. As long as I use it responsibly, they will let it stay open after the year and I can continue to use it as I pay the principle down. The interest only payments on $75K is $400/month (although I wouldn't need that much. its just a number we pulled out)

 Heres the numbers:

listed price: $240K

financed amount: $180K

down payment: 25%

Terms: 20 year @ 5.25%

CLOC: $400/month (approximately)

Total monthly expenses: $1933 (mortgage, taxes, insurance, water, garbage, sewage) + $400 CLOC payment + 10% repairs= $2783                                     

income: $4500/month

I crunched the numbers and get $20,604 annual cash flow, to include taking 10% from the gross monthly income for repairs/maintenance. 

cash flow: $20,604

total investment: $60K

Cash on Cash is 34%. 

This seems like an incredible deal unless im missing something. What do y'all think?