Multi-Family deal analysis

[Kenneth Garrett]

Hi All, Can you look at the numbers below.  I think the numbers make sense. 

6 Flat B Area. 

Gross annual rental income    $68,400

Net Operating Income            $25,500

Cap Rate                                  6%

P&I                                           22,356  

Cash flow per door/month        $285

[Jonathan Towell]

It sounds like you like it, so go for it!

For me it looks like there isn't enough information to make a good decision:

1. Is it in a good neighborhood where it will stay rented and appreciate in value?
2. What deferred maintenance is there?
3. Can rents be increased?
4. What kind of debt is that? Non-recourse? What is the interest and amortization period? Term?
5. What other opportunities in the same area?
6. Is good management available? Or will you be able to manage it?
7. How accurate are the expenses? Do they reflect an increase in taxes or other expenses that may be different after the property is purchased?
8. Is there an opportunity to reduce expenses? Billing back utilities? Reducing utilities? Etc.

These are just a few of the many questions I'd still want to know before moving forward on a deal like this.