First multi-family deal, want opinions!
Hello! Want some opinions on my first large deal that I am thinking of doing (I have a couple duplexes that have turned out great but this will be my first apartment complex and I want second opinions and thoughts). It seems like these posts always lack in details so I will try to give the most information possible:
Sale Price: $575k
Current rent: $6825 (this is topped out, no room to increase)
Loan terms: 20% down, 20 year 5 year balloon 5.75% interests
Management: 7%
Insurance: $3200
Maintenance/capex: $5000
Taxes: $8900
Vacancy: Using 5%
Property is C class and in good condition (new furnances, roof, etc) No common areas. Tenants pay all utilities. Location is in the midwest. Neighborhood is next to major employers, no crime.
Is there something I am missing? What do you guys think? Good, meh, run away?