1st rental property purchase

[Jeremy Swanson]

Hey everyone! So over the last year I've been educating myself hardcore on RE and I think I'm ready to finally jump. I found a decent deal on a 4-plex and wanted to get some thoughts. I am a Army veteran and I am going to be using my VA loan. I anticipate being able get into the deal for 0 out of pocket cash. All four units are rented out with leases on 3 and the 4th is month to month. Being that the va loan requires owner occupancy, I would be giving the month to month tenant a 30 day notice to vacate. The home was built in 1940 but I have checked it out and looks pretty decent. Roof was replaced 5 years ago and looks nice. 3 of the 4 water heaters are under 2 years old. It's definitely not the taj mahal but is very livable. After negotiations, the seller just submitted his final over. Heres the deal: $154,900 purchase price and seller agreed to cover all closing costs. Monthly expenses Mortgage: $840 Taxes: $50 Insurance: $225 Flood insurance: $60 Vacancy of 5%: $107 Cap Ex: $172 Total monthly expenses: $1454 All 4 units generate $2150 3 units rented out with me in the 4th generate $1625 1st year cashflow: $171/month After I move out and can rent out the 4th unit cashflow: $696/month What do you guys think? Have I missed anything?