Looking for feedback on 13 unit apartment deal

[Rob McCarthy]

Appreciate feedback on this potential apartment complex deal.

Number of units- 13 townhouses (2 stories and a basement). Asking price= $550,000.00

Of the thirteen units:

5 are weather tight, and unfinished

5 are newer (2 bedrooms, 1.5 baths)

3 are older (2 bedrooms, 1 bath)

Average current rent= $797.50

2014 gross income= $54,605.00 (unverified and seems like it includea vacancies, but unsure how many.)

Total expense (2014-unverified) = $21,855.92

Above expenses do not include tax ($18,896), management fee, repair set aside, or principal and interest on the mortgage.

The property is in a rural location. The population of the town is under 3,000.

There is a possibility that the townhouses could be converted to condos.

I’m thinking that after adding in potential vacancies, management fees, ongoing repairs, etc., there is very little cash flow.

Does anyone see anything they like about the above scenario?

Thanks!