How to evaluate this multiplex deal?

[Martha Daisley]

Hi everyone!

Im an investor with a couple of residential properties and an airbnb. ive never done a commercial loan but Im considering my first multiplex deal with 6 units in it  I have two questions. First off, how do you guys usually structure these multiplex deals?  Just go to the bank and get a commercial loan or some sort of creative financing?  I had one lender tell me they are not doing commercial loans during covid so im hunting around for one that will. 

Secondly, how can i determine if this deal has a good cap rate based on these figures:

Price: $424,900 
Total Average Monthly Rent Income: $5,160 (currently fully occupied and no repairs needed)
Average Monthly Expenses: $955 (utilities, lawn etc)
Taxes & Insurance: $537 / month

These expenses dont include my loan payment which im estimating would be somewhere in the neighborhood of 2k a month.

So im estimating my net profit would be around $1400 or $1500 a month. I would set aside some money for vacancies and repairs too so it would really be around $1300 a month in profit. 

Does this sound like a good deal?

Thanks in advance for your input!

Martha