Deal Analysis (First-time Multi-family)

[Parker F.]

I'm looking at a 5 unit building in a "transitional" area. (Rents are rising, but the neighborhood is not completely gentrified. Lots of ethnic and socioeconomic diversity.) I mention this because I don't speak Spanish and am worried about buying a property where I can't easily communicate with tenants.

Asking Price $700k
Unit Mix:  Four 2 bed + 1 bath, and one 3 bed + 1 bath.
Average Rent: ~$1500
CAP Rate: ~8.5%

The property has been recently updated (new paint, carpet, countertops) nothing fancy but appropriate for the neighborhood and price point.

On paper this looks like a very good deal, unfortunately I have no prior experience with this type of investment and "on paper" isn't good enough for me. I know the area well enough to be interested in this deal, but I'm most concerned about any blind spots I have WRT making this type of investment.

What questions should I be asking of the seller that they might want to obfuscate from potential buyers?

Thanks in advance for your thoughts and comments!