6 Unit Apartment Deal

[Avonta Canady]

Hey BiggerPocket Family!

I have my first apartment deal and need some advice on acquisition and exit. Its 6 units all 2 bed 1 bath rented at $850 (max rent I could increase to is 950 with updating) Purchase price 385k, (could potential update for about 8k per unit). Annual NOI 38k, DSCR 1.46, 10% cap monthly cash flow after expenses 1.2k. I don't want to tie up 100k (25% down) so are there any suggestions? Would you do this deal and how?

[Dan Armich]

@Avonta Canady - walk away. It isn’t that this is definitely a bad deal, it is that there are a few things that make this a less good deal. 
- your upside is identified as only 100.00 bucks. Sounds like the rent is already maxed out. 
- to get that 100.00 bucks you are spending 8k. 
- the down payment is what it is, but my concern is also that you potentially have 48k in renovation costs. 

Keep looking for something with more meat on the deal.