16 unit near Flint, MI

Ladies and Gents,

Here's the details. I'd like your opinions/suggestions.

List price $440,000

16- 1 br units; one building; upper and lower units
1 vacant
On site leased laundry (2 machines)
Landlord pays water and gas
Tenants pay electric

Revenue per unit(stated):
11 @ 415
1 @ 440
2 @ 430
1 @420
1 @ 410
Laundry $1100/yr
Total Rev $81,320/yr

Expenses (stated):
Gas/electric $8626/yr
Water $4300/yr
Taxes $8000/yr
Ins $3000/yr
Yard Maint $1490/yr
Trash $804/yr
Total Expenses (stated): $26,220/yr (well below the 50% rule)

Tax information: last transfer 1999; 54.2663 mills for non-owner occ.; current SEV $162,400; taxable value current $145122

From the listing agent: Nice old lady has owned them for 30 years; built in '70's; currently has one vacancy; all units are 1 yr lease; half of tenants have been there for a very long time (years); other 8 units turn about 1x/yr; great neighborhood; upscale community; walking distance to downtown; roof is 4 years old; hot water heat (LL pays); "A" property

Have not seen the inside yet, from the pictures I've seen the kitchen/bathrooms are outdated. From my drive-by it looks like the "worst property on a good block"; not in disrepair just a little unkept; ugly mailboxes, dirty siding; leaves not picked up; no sign, very little landscaping.

According to local banks, cap rates on deals are 8.5% on the low side to 10.5% in the mid-high side.

What would you guys offer? Assuming 20% down (worst case) or less. Suggestions? I'm looking to hold onto the property for at least 5 years.

:beer: :beer: