Multi family in Waco

[Huan Yang]

we are about to get under contract with this 16 unit multi family property in Waco. Did the inspection yesterday, there are a lot of deferred maintenance, like the bath tub porcelain chipped off, tiles falling off the wall, carpets and vinyl floors in bad shape, HVAC units outside part got rustic, etc. the main structure and roof, Windows are in ok shape. Cap rate is at 11% on actuals. Rents are a 10% below market. Individual meters for electricity are available but not being used right now.

I was worried about all the fixing will end up costing too much money, will  turn it into a suckie deal.

Should we go with the deal? 

The location is c and the class is c.

Thanks!