Zeroing in on my first deal - need advice!

I currently live in a college town that was hit pretty hard by speculation and foreclosures. The property I am looking at sold for $125-140k back in '07. The complex is around six years old and in good condition. The apartment units are 4br/ba and the townhouses are 4/br/4.5ba with a good bit more square footage and a small “porch” (concrete slab). Most of the tenants are college kids with one-year leases. Tenants pay electric. Based on comps and research, I’ll include the figures I’ve come across for this particular apartment.

Purchase price: $75,000

Gross Rent: $400 per person x 4 people = $1,600
PI = ($450)
Vacancy: Low in this area but let’s say 10% = ($160)
Condo fees (includes insurance) = ($200)
Taxes = ($100)
Expenses & Water bill = ($250)

Cash flow = $440

Vacancy rate is probably an overestimate. Expenses are probably an overestimate due to age and condition of property. Cosmetic repairs will be handled by myself. Taxes are probably underestimated due to the first property will be my primary residence - I will live in one and rent out the other 3 to friends while I finish my bachelor’s and master’s degrees. Rent almost automatically rises 5% per year in this area. The other student housing in the area is either much more expensive or in less desirable locations with less desirable neighbors. The complex is ~4 miles from campus and on the bus route to the campus.

I would love for a more experienced investor to check my calculations. Also, I know I will need a cosigner because my credit history and income history is minimal, though I did make a pretty good amount of money this past year with my property preservation business. Would a bank loan the amount to me, without a cosigner, based on the merits of the property as a commercial loan? I have no debt and about $20,000 in cash and a short-term note for $7,500 with more income possibilities over the next year with my business.

I already have a cosigner, a very close family member, ready to sign. We are going to get the POF letter from the bank this week. But I would love to be able to buy more than one of these properties on my own!! How could I do that?

Is this a unit in a complex?

Yes. The complex is quite large. It has a nice clubhouse with a couple of pools and entertainment areas and basketball court. The townhouses seem to have the highest demand, though I don’t know of a vacancy in either because there is normally a waiting list after the school year begins.

You are asking a tough question about whether the banks will loan you what you need. Sometimes it is best to go to you small, local college town bank that may know you. They many times will be more wanting than the large, national banks.
It is hard to say these days, banks have new people every day. If you know a banker, that will help a lot.
Good luck.