Experienced SFR and small (2-4 unit) MF investor. Looking to break into larger deals. My partner and I have a 1950’s 11 unit under contract. 7 unit apartment block (all 1bed/1ba) and 2 duplexes (both 2 bed/1 ba). Purchase price is $450k – Commercial Loan 7 years fixed at 4.25% / 20 year amm / no pre-payment penalty.
All units are rented – no major repairs are required. Units are dated, but solid and well maintained. Current gross rents are $5600/month. Market rent is approx. $6500 – 6900 All units are individually metered for utilities. Owner does pay hot water on the 7-unit, trash and lawn maint – approx $375/month Taxes, insurance, vacancy, and property management are actuals on the calculator. Maintenance is set to 11% of gross rents. All tenants are current and owner did not have any issues collecting during COVID. Inspection came back clean – Apartment block is on a slab and has cast iron waste lines – so we expect to have to address that when we remodel units (as tenants turn over). There is a possibility of renting out storage space to a local contractor for approx. $300/month, but that is not factored into our numbers as it is not guaranteed.
So…….let me have it – what are your thoughts?[Imgur](https://i.imgur.com/OUcCqnc.jpg)