One month left - Is this 5 plex a deal?

[Ess Dee]

Some of you may recognize me, I posted in the forum regarding trouble securing financing in the USA as UK resident.

I found some deals offering seller financing. One in particular, a five plex... If I purchase this, it could get me in the bag with private financing in the future (most require you to have some kind of portfolio usually five doors).

I visited the property today. The seller is a nice old lady who maintains and manages the property herself. With some negotiating, i could create a positive cash flow of $400 a month (from 1300 rent). Asking price is 120k, but i think its worth no more than 100/110 with my calculations. Cap rate is still being figured out, likely close to 10.

However my question is this. The building is from 1900s, the neighbourhood is a low income one, and the tenants are.. Lets just say they arent your happy jolly family types. 3 out of the 5 treat it like their home. Very well kept. HOWEVER one is part of some rehab program and I couldnt even find a bed in there.. he hasnt trashed the place but I basically came in he had no shirt on, skinny as hell and seemed like he was seeing stars. The 5th tenant was a mother upstairs, lived in a friggin pig sty. kid running around, garbage everywhere. definitely on drugs. She was friendly (welfare mum), but it looked like section 8 (i think you americans call it) housing scene. 

Is this still a good deal? Should i judge solely on cashflow or also by the tenants im inheriting? Not to sound heartless, but can i evict the ones i want out for being so damn filthy before their leases run out? 

Even if maintanence costs are low, im assuming getting rid of some tenants and fixing the place back up and getting good ones in will put me in a negative cash flow for six months at least. Or.. if it aint broke dont fix it? Just collect my rents and turn a blind eye.

What do you guys think?