Is This A Good Deal?

I am a newbie to multifamily and need some advice on a potential deal. Here are the annual numbers:



asking price: 250k

7 units (5-1BR, 2-2 BR)



Annual rents: 33,900

insurance: 1,717

taxes: 2,264

utilities: 4,332

repairs (last year): 1,182



I also factor in 15% for management and vacancy



Current owner pays for water in all units, hot water in 6, and electricity in 3. Is this normal to pay gas/electric bill?? I think rents are pretty low considering he does this currently (range from $350-425). Is in a fairly nice (however older) area near hospitals and universities.



Considering I am looking to only put down 5-10% what would be a good initial offer and what should be my final offer?

[ Edited by natureboy1 on Date 07/27/2006 ]

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