6-unit in the Youngstown, OH area

[Nicole Heasley Beitenman]

I'm looking at a 6-unit down the street from my parents' house. The current owner have had it since the 50's and are tired of managing it as they are both in their 90's. They've left half the unit vacant simply because they didn't want to deal with a fully-occupied building. They're motivated and have received one low-ball owner-financed offer that they are considering.

5 units are 2 br/1 ba and 1 unit is an efficiency. Asking $180k. Current rents at $1,950. We're told it's in mint condition, but we're estimating $5k as we'd like to install coin-operated laundry (hookups are already there) at the very least. I'm estimating we can get rents + laundry income up to $3,220/month. Operating expenses include water ($480/month), insurance ($150/month), trash ($60/month), and property tax ($256). We'd like to offer asking price at 6% amortized over 30 years with a balloon at 5 years. Estimating CapEx and property management at 10% each and vacancy and repairs at 5% each. But if my math is right, post-tax cashflow is only $33/unit, and I'd want at least $100 ($50 for the efficiency). Is there a way to turn this into a deal? TIA!