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The operating expenses on a 5unit should be about 35-45% of gross rents. Once you factor in 10% vacancy (the bank will use this number) plus all your operating expenses there isnt even enough revenue to cover expenses. Especially with insurance at half a percent. Then you add in the mortgage...

Do a search on www.loopnet.com for what similar places are selling for. (Most caps are overstated due to incorrect vacancy rates, insurance premiums and prop taxes) but it will give you a decent idea of the market. For fundamental analysis of the market check out Hendrick & Partners report...