First Possible Muli-Family Purchase

[Scott Littlefield]

So, I am considering my first multifamily deal. Ive done several single family, but my first multi. This is a 3 unit in a C+ class neighborhood. I built myself a calculator to analyze deals and I wanted to run this property past you. My main concern is just the lack of actual cash flow after all hard and soft expenses are built in. I have not yet physically looked at this property, I will be looking at it tomorrow. The rents should be able to be raised. All three tenants are MTM and appear to be 25-35% below market value. However there may be a good reason why that I don't know about. I think all three units would need rehabbed to get maximum rent even though some smaller adjustments could be made without rehabs. See my calculations below.