Do you think this is a good deal?

I saw a deal to make some Cashflow and I was wondering if this was a good deal. What do you guys think?

Great Investment Opportunity! Fabulous, well-maintained apartment building in a sought-after, rapidly improving and appreciating neighborhood. This property is benefiting substantial growth and development in the area, which include Light Rail project, Effectively built in 1978, the property has 3,736 sqft, three stories, wood frame structure and stucco exterior siding. The lot has 4,871 sqft, is well positionned, easy access and close to all commercial stores.
The building has 6 units:5 units with 1 bedroom (about 622 sq feet each) and one studio with about 500 sqfeet. All are corner units with spacious floorplans, most have double pane windows. Each unit has a good kitchen and a full bath.
The building has been upgraded last year with new carpeting, new water-saving toilets, plumbing fixtures, newer appliances,etc. Building also has a storage room,laundry room with Coin-operated washer and dryer, 11 parking spaces and several additional street parking.
This building is almost self managed and has low maintenance. All units are currently rented by long-term tenants. Current rent is below market. The current rent is $485 for the studio and $550 for each 1 bdr unit. Gross monthly income is over $3,300 and can be increased. Expenses include: Utilities: $350/month. Insurance: $100/m and tax: $244/m.
Property is on a major Metro Bus line. A great opportunity for investors, property managers or developers, this building can continue to generate income or can be converted into condo for sale.
Current zoning is L3, possible commercial use in the future (buyers to verify), two houses South are used as commercial stores. Some neighbor lots are being purchased by developers for new townhome construction.
Please drive by and view.

The price is 535,000.

What would be the first thing that I would consider checking for?

All input is appreciated.

Apart from not understanding what “Effectively built in 1978” means I don’t see how this would be good cash flow - asking $535,000, say $35,000 down and a 30 year loan period for the rest, at todays rate of 6.27% your monthly payment would be $3,085.09. They say Gross monthly is “over $3,300” but looking at the rents they only add up to $3,285 minus monthly costs they list of $694 that looks to me like the cash is flowing in the wrong direction! Maybe that’s the real reason it’s for sale.

Dave N

Spacious floorplans? 622 sq. ft? Why not live in a closet?

Da Wiz

looks like an alligator

what the heck is “almost self-managed manner?” this translates in my mind to 'I haven’t done a damn bit of work on this property and the tenants do whatever they want"

plus you have to get a commerical loan. that means 20-30% down, and a mortgage rate of about 8%

Thanks guys for your continued insight!!!

i looked at over a dozen properties[well looked at several dozen and these were the ones i short-listed]. in each, the seller was lying about the expenses involved and asking for way too much.

not that good deals aren’t out there. i just can’t find them.

so i gave up looking and started looking at oil deals. lets see how that works out.