Small rural town Appraisal issues 6 plex
I am looking at a small 1900 build 6 plex in MN. Numbers look great. Even at 25% down the Cash on Cash is over 18%. I ran the sellers numbers and then added Cap EX and Management costs at 5 and 8%. Numbers still look good. The questions that are slowing me down are what if the appraisal comes back low.
1. Can I get financed? It may be worth more to the seller than to the bank.
2. Small town, No pop growth in the last 20 years. How concerned should I be?
3. Property is an hour from me, I can self manage but preference is to have management in place.
4. Exit strategy- If the CF doesn't work as planned. Selling won't be quick or easy.
Any help would be appreciated. I plan on offering or passing by Monday.