Need Help making a decision

[Chaim Zigelman]

Hi All,

I found a property that is requesting $425,000. I need some help to determine if I should make an offer or not. If I do, i plan to make it between $360 and $390k. I assume $390k as that is what I am told by my agent that he will not go below. 

Any help is appreciated. LTV is 75%.

5 Plex

Total Rents: $45,600
Vacancy 8.7%: $3,967
Taxes: $4,520
Insurance: $2,100
PMC: $4,560
Repairs: Unknown (Could be $1,000 or best guess of 10% of GRI $4,560) Need inspector
Electricity, Heat & Water: $2,500
Misc.: $200

Total Expenses: $14,880

NOI: $26,753

Mortgage: 4.63% 
Debt Service: $18,026

Cash Flow: $8,727

Down Payment: $97,500

CoC if Maintenance at $1,000: 8.9%
CoC if Maintenance at $4,560: 5.3%

The maintenance portion of the above is not fully vetted and could bring my CoC return lower. I was also told that we could tell the tenants that they have to pay for heat and hot water at a charge of $35 a month. This would almost eliminate the $2500 EHW expense. I am not sure if this is common practice so not sure if I should take it seriously. If I am able to do it, it would raise the CoC considerably.

Thoughts? =)