Worth pursuing this rental?

Question

Ok so it's next to impossible to find any cashflowing property in my area  but I found this 3 family house that looks promising. It seems to be listed incorrectly so I don't think its getting exposure. 
They are asking 237k
Fully occupied for $2650 in rents
Expenses at $888/month (includes taxes, maintenance, heat, etc).
The loans that I have available (before shopping the lenders against each other), are 75/25 at 7.125% int only, and 13.5 fixed, or 75/20 at 7% int only and 11.25 fixed.
Now supposing I paid full asking price (which I wouldn't, but just theoretically)  and put 5% down,  cash flow would be $265/month or with 0 down - $29/month.  Now those numbers aren't impressive, I know, but that's a starting point. It's also one of the only mf's that I've found that would cash flow AT ALL.
At say 200k we're looking at $499 or $298 in cashflow/month. I know these are preliminary numbers, but I'm wondering if I should pursue this at all? What do you consider bare minimum cashflow per unit to be acceptable? Should I wait til I can dole out 10%+ on down payments, which may be awhile? At this very moment I have only about 20k thats not tied up elsewhere. 
And sorry for yet another long winded post - guess I have lots to say, or rather need lots of advice. Thanks all-

N/A N/A · Answer

Make sure you get actual bills for expenses, if the seller says they don't have them, tell them they can contact their heating source supplier (gas or oil, I'm assuming) and utility providers for billing history.  Also get copies of leases so you know for sure what expenses the landlord pays and the tenant pays.  When you are cutting it as close as you are for cash flow, a few bucks here and there can make a big difference.  In my limited recent experience, sellers often vastly underestimate their expenses and overstate the income.

Good luck....I know from experience it is tough to find a property in the northeast that will flow.  I'm still looking!

Tom Wood · Answer

It's really an individual choice, but the lower the monthly cashflow, the more you should have in reserves in case repairs come up.  What is your strategy?  Cashflow, appreciation or both.  As far as cashflow this seems like a pretty good property to consider.