Help me Analysis this deal!
My husband and I are in the greater Birmingham market. We found this property and are preparing to make an offer. The listing agent is sending us rent rolls and all other documents they have right now. We have asked the owners if they would owner finance and they said yes depending on the terms. What offer should I make them? What risk am I not seeing? Will this make my family money?
Property
54 Worthington Dr # 15, Woodstock, AL 35188 <- Link to Redfin
4 2bed/1bath for 524 and 1bed/1bath for 485.
Concerns
The 5plex property is located 20 minuets away from any shopping or dinning. It is rural. there is a farms and national parks on the same road. It seems to be the only rental property in the area. I drove around and could not find a for rent sign. Online I can't find any past rent postings for nearby homes on Craigslist, Hot Pads and others.
2 units are vacant, We could move in to one if we wished.
"The" Numbers
Annual Gross Rent are 31020. Asking Price of 185000. Down payment 17500
What should I offer? Below are cost if I pay 185,000 for it. I get about $105 per door. My estimates are very high on expenses. There are no comps.
Expenses
Monthly PITI payment $1078.28 This is derived from a 360 month term at 4.5% interest. Property Tax of $1348. Insurance of $1350 this is a blind estimate quote pending. Wells Fargo has per-approved us at 4.275% interest last month.
Maintenance 4000 annual. estimated as 2% +500, I feel this is a high estimate.
Vacancy rates are unknown in the area and are estimated at 8% annual for $2481.60
Property Management for the future, if we ever need it, is $2853.84 annual
Repairs and CapEx
The duplex has a new roof put on 7 years ago and looks good. The triplex's roof is 31 years old and has been repaired over the years. Currently there are 4 10x10 feet areas that need roof patching. the floors in 2 units need new carpet and paint now. The HVAC are 2 tons for each unit and are less than 7 years old. 5 4x8 patches of dry wall need to replaced. 3 water heaters are less than 4 years old, 2 are about 8 years old. The stoves, fridge and dishwashers are all about 5 years old. No pluming issues are seen.
Data is form a onsite inspection last week. I report on damages on ROE to banks for a living.
Schools
The school scores 6/10 on GreatSchools.org compared to the lower scoring neighboring areas 2/10 and 4/10.