Analyzing a multifamily deal...does this make sense?

[Christopher Pride]

Multifamily with a house and 11 rentals.  House is VERY old but well built.  Would need some cosmetic (paint, refinish floors, minor repairs/upgrades completed by me). It has been on the market for over 100 days.  Realtor says another deal fell through because it didn't fit their needs for an event location.

We'd be coming in with 20% and look at about $10k in initial improvements.  This would obviously be contingent on a thorough inspection.

Asking price: 1075000

Annual Rent: 139k

Vacancy reported: 5%

Insurance: 5900

Maintenance: 10k

Taxes: 4k

Utilities: 15,600

_____________________________

Total Expense: 35500

working on financing this week but I understand I'd be at around 6.5%

My biggest concern is DOM and major repairs needed. Rents can be increased. CAP from my calculation is +10% so naturally I am going to scrutinize. It almost seems...well...too good to be true hence the ask "does this make sense"

Any thoughts or your take on the deal would be so awesome.  You guys rock!

[Gino Barbaro]

@Christopher Pride

Median income is not bad. I would be more concerned with the size of the market if I was looking to flip. If the goal is to ref and hold, then it may be less of a concern. This just answers the question why on market for so long. There is less demand for assets in tertiary markets.

I'm not a fan of all 1 beds, but that depends upon the market. They tend to be a bit more of tenant turnover.

Just make sure you run rent comps and can achieve the increase projected

Good luck

Gino