[Calc Review] Help me analyze this deal
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Need some feedback on this one. I'm making a couple assumptions here.
I don't normally deal with commercial mortgages, but this one is a 5 unit. The rates I'm getting from my broker are 4.375%-4.5% for a 5/1 ARM.
I factored in the property management at 10%, but I'm planning on self managing. The down payment would be financed by a private investor.
Initial thoughts? Does this look like a good deal at first glance? I know terms of the private loan for the down payment could change this significantly, but hypothetically, if I had the cash, would this appear to be a good deal? What should I change?
Note about the property - there is still room to raise rents. 2 of the 5 units have not been renovated. It's not something I would do immediately as it is 100% occupied.