Hi BP I recently went to view a property on the south west side of Chicago little village and wanted some feed back on the analysis I ran for the property. Any advice is greatly appreciated.

8bd/4bth legal 3 unit 

Unit 1:2/1 TNT pays all, rent 550

Unit2:2/1 TNT pays all rent 475

Unit 3:2/1 rent 450

Asking price 100k

ARV 140k

Dp 5% at 5k loan AMT 95k

Loan interest at 4%

Expenses:

P&I: 453

Insurance: 100 

Water sewer: 100

Prop tax:300

Repairs: 147.50 at 10%

Capex:147.50 at 10%

Vacancy:118.00 at 8%

Cashflow: 158.46

Cap rate:5.25%

Coc ROI:38.03%

GRM:5.65

This represents a purchase at asking price however when I viewed the unit a couple things stood out the attic seemed to have done a little moisture issues so I'm guessing the roof might need replacing, also the tenant in one unit had been therefore 10 years, thus the rental are below market value from comparables a these units rent could conservatively be rented for 600 600 and 525 boosting cf to 383.46, the first unit has lower ceiling also the one tenant who'd been there for 10 years complained of the first unit being occupied by gang bangers who sell drugs out the unit. How would you guys go about this which you put a contingency upon that unit being transferred vacant upon purchase? To not have to possibly deal with these tenants? Also being that the one unit has lower ceilings would you expect more tenant turnover due to less desirability? This is in an area mostly working class I would rate it C neighborhood mostly blue collar jobs. It is also 12 min walk to the train Wich gets downtown in about 19min. Would you guys also try to lower the purchase price to 80k considering the gang bangers issue in the basement possibly need to evict them and also the roof maybe needing to be replaced? Or would you avoid these deal seeing as how if you tried to evict alleged gang bangers they might trash the unit killing some of the below market profit? Any feedback is once again appreciated thanks.