This off-market deal came across my desk today: https://www.biggerpockets.com/buy_and_hold_results...

Rare 6 unit in a hot market (literally first 6 unit I've seen for sale here in years). High-appreciation area with steadily rising rents (avg. appreciation 6.9%, rent increase 7.2% 2018). I own a quad just down the street that has had 0% vacancy, 10% appreciation, 10% rent increase last few years. The building is a late 70's 6 unit consisting of 1200ft2 townhome-style apartments, all 2bd 1.5ba with private decks, off street parking. Units are in decent condition but dated with plenty of room for value-ad. Currently rented to long term tenants, 25-30% under market. Rents could be pushed to $1,350 easily as-is (lipstick only) or potentially $1,750 fully updated (rentometer says $1950 average but it's a below average building for the neighborhood). Class C+ building in a solid B+/A- area (just across the street from a popular lake and surrounded by mostly nice SFH in the $350-500k range). Good school district. W/D in units.

Inspection report looks pretty good: nothing major, 4 furnaces from the 80's, 2 others are new, water heaters need replacing soon, EPDM roof 10 yrs old good condition, some windows newer vinyl others original need replacing, foundation and bones pretty good. The plan would be to keep everything going as-is minus necessary repairs like windows and water heaters, then update the units and max out rents as they turn. 

What I like is that this is in one of the last "affordable" areas of Boulder County where average home price is $550k and average condo is $400k. Tons of new restaurants and breweries are going in downtown which is 1 mile away. Our other buildings nearby perform well and the area is up and coming with great upside potential.

I usually shoot for $500/door positive cash flow and this isn't there but it can get there in 2 years. COC isn't stellar at a mere 7.72% but if appreciation continues on pace that could easily be six figures per year so we could potentially refi and pull all our cash out in a year or two (although I don't usually do that because I'm too stingy to pay closing costs twice and sourcing capital for deals isn't an issue). The building is set up townhome-style with kitchen/living/half bath on 1st level, 2 beds full bath upstairs, and is individually metered so it would be possible to sell off units as townhomes for ~$210k easy as-is or potentially ~$300k ea. with ~$20k in upgrades/unit. That will probably be the exit strategy but for now we'd be looking to hold.

My main hesitation is due to limited bandwidth. We just had our 3rd boy so we now have 3 high maintenance boys under 4yrs old. I already do repairs and maintenance on 19 units, so not really looking forward to all the headaches inherent in taking on a new 6 unit property built in the 70's (I would outsource more but it's nearly impossible to find quality labor around here, this is a boom town likely cresting the market cycle so all the non-methhead workers are booked solid for months and the smart ones stick to new construction or high-end stuff and wouldn't return my calls on most of this crap. One day my boys will swing hammers at something besides their brother's heads lol). With all the tenants being long-term I know there is a ton of deferred maintenance waiting for me. Taking on a new property is always time-consuming in my experience and I don't have any of that at the moment. The water heaters are in tight crawl spaces which I dislike, it's got swamp coolers which I dislike, and pretty much all the other work that needs doing just doesn't look enjoyable and I'm already too busy. I was hoping my next purchase would be closer to our house and a higher quality building that I would enjoy working on more, so I'm not over the moon on this deal just for those personal reasons. But compared to any other deals I've seen around here in the past year, the numbers are enticing so should probably suck it up and pull the trigger... Thoughts?