Small Apartment Building

[Amy E.]

I am a newbie investor.  I've been in business a little over a year, and have 3 SFRs.  Lately I've always wanted to do smaller multi-family housing, but my area is somewhat rural and there are very few duplexes (or tri, or quad-plexes).  I recently found a couple of apartment buildings for sale.  Bare minimum apartments, class C certainly.  They are in an area with lots of other similar buildings.  I think the rent is a bit low on the 8 unit building, but the 12 unit building is probably average for the area ($625).  The 12 unit needs a roof for sure.  Have not driven by the other yet.  Price not withstanding (I think they're both a bit overpriced), I have some general questions I thought you all could help with.

8 Unit:

http://www.zillow.com/homes/for_sale/2104956759_zp...

12 Unit:

http://www.trulia.com/property/1076395840-1055-Mor...

1. Do you analyze apartments differently than SFR? If so, how so? Are your assumptions different (more/less maintenance, more/less turnover, etc.).

2. This is a part time job for me, as I am already employed full time.  I'm managing the SFRs myself, but if I add apartments I think that will be too much for me. I'm tempted to manage it myself, but I can be a bit lazy when it comes to tenant turnover and my properties stay empty longer as a result. I was planning on using a property management company and/or hire someone on-site to manage and do maintenance.  Pros/cons of this?

3. I own the 3 SFRs outright and if I mortgage them under one commercial loan I could probably get $110k out. Was planning to use some of this for a downpayment and the rest for any rehab required (would have to get in to look and see what's actually required). I know I can get a commercial mortgage with our local bank at 75% LTV, 5% APR, 20 year term. Advice for financing options to consider?

4. General pitfalls to look for and/or lessons learned from folks who bought small apartment units?

Appreciate the inputs.