need help with 1st deal in CT

[Ginger G.]

I have been looking at 2-4 unit multifamily properties (3b/1.5b) in the Southington, CT area I did a site visit with my handyman.

Property is in good shape new roof and deck, except for aluminum wiring and cosmetic items.

This market has been very competitive the last year and decent properties don't stay on the market too long. 

I have a prospective deal from direct letter I sent out.

I want to make an offer on this property.

How much profit should be built into a multifamily buy and hold?

I understand in a flip 25% to 30% in needed.

Recap:

Duplex in quiet neighborhood.

Built 1970.

Owners debt heavy (1st mortgage $219k, 2nd mortgage $42k)

Sales comp $255,000 July 2017 (I walked this one and it had basement water issues, near highway and less land)

My offer would be:

Assumed their 1st mortgage for $219k. This would allow me to purchase with no money down, correct?

Cash out of my pocket $6,000 closing costs

Rents at $2,400 monthly with 10% vacancy rate

Tax & insurance

15% property management cost

Cash flow would be $420 monthly/ $5,040 annually

cash on cash return 89.9%

Or

$220,000 subject to obtaining financing (25% down at 4.5%) and inspection, other contingencies.

Cash out of my pocket $58,000

Rents at $2,400 monthly with 10% vacancy rate

after Tax & insurance

15% property management cost

Cash flow would be $420 monthly/ $5,040 annually

cash on cash return 14.6%

I appreciate any feedback.

Ginger