8 Family Unit - Good Deal?

[Amaf J.]

Good afternoon everyone,

I'm new to both real estate and to this forum. I've done a fair amount of researching which included reading books and viewing some investment videos. I want to hit the ground running so I did some research on potential opportunities.

I found a local property that's 8 units, newly renovated, brick building and it's completely vacant. Asking for the property is $550,000 and I plan on using a FHA loan to purchase the property. Property is located in an urban area (East Orange, NJ) with the possibility of section 8 being offered. They're stating based on their analysis that it's a 13.53% cap rate.

- 5 rooms, 3 bed, 1 bath per unit with 8 units

- Saying the market rate for each unit is $1,200 or section 8 is $1,632 

Here is a copy of the analysis that was sent to me:

Link to analysis

(If it's too small then I'll put it into an excel file)

What do you guys think about this deal?

Thank you all.