First Property Help! Two duplexes, 4 units

[Evan Tuuk]

I am looking into buying a pair of duplexes in TN (I live in Texas) and would like some advice. This is a small town (about 11,000), and isn't the greatest cash flowing market, but I have grandparents and cousins there, and several other family members considering moving there in the next few of years. It would be my first property, and I'm looking for a base hit, and an asset close to family and in a cheaper market than where I live (no cash flow here). Here's some basic info on the property:

Asking price: $350k
Current Gross Rent: $2600
Landlord pays sewer/water at $150/month and trash at $64/month.

Current owner flipped it 2 years ago so it has a brand new roof and windows, plus new appliances, granite counters, plumbing fixtures, etc. One unit wasn't completely redone because the tenant has been there 20 years and preferred fewer repairs to keep his rent lower. 

Tenants are currently paying $500 (he's been there 20 years and takes care of all the landscaping for discounted rent), $650, $750, and $750 = $2650

Seller isn't too motivated unfortunately. He said he threw it up for sale by owner to feel out the market but doesn't have any need to sell it anytime soon.

With these numbers, with a 10% management fee, it runs at $42/month cash flow and a 0.74% CoC return. Definitely not worth it.

My dilema is this: according to a local property manager I could get $700-$800 per unit all day. Rental demand is definitely going up in the area and they haven't had an issue finding tenants. You couldn't really find a better part of town to be in either. 

If rents were all raised to $775 and I passed the water bill on to the tenants, and according to the property manager would definitely be reasonable, at asking price I'd be looking at $588/month cash flow and 7.5% CoC. I'm fine with a base hit, and I think even moving into the future I could still raise rents a little more and separate the water so tenants pay that directly. I like that it has a brand new roof, new windows, and recently updated because I'm not in a position to do any major upgrades to create more value.

Also, I don't want to be that greedy new landlord coming in and raising rents and things. Especially with the guy that's been there 20 years and the other that's been there 8.

Any thoughts from you guys would be appreciated! Obviously the lower the purchase price, the better the deal, which might be the way that it will have to work. I just know he isn't too motivated to sell. Thanks!