1st "Deal" with a Multi. To Quad or Not to Quad

[Drew Dim]

We recently moved to a new state (where properties are quiet expensive compared to TX) and we found a quadplex for sale for $429k. Rents are a bit below market at $955 and we want to owner occupy utilizing the FHA process. I believe rates could be increased around 100/150 per unit and still be quiet competitive. 1 unit is fully remodeled and the owner would like to stay in it. The other three could use the normal fix up.

Here's the run down. (#s came from listing agent so they should be solid as of last year)

Mortgage - $2365

Taxes - $512

Ins. - $200

Trash/all utilities - 475.    (Tenant pays their own electric)

Reserves (4%) - 152

Vacancy (2%) $76.  (Very low vacancy in city)

At current rental rates 

If I'm not mistaken Cash in Cash = 10.87%

Cap Rate = 7%

For an area that's challenging to find, is this worth continuing with?  Area is good, and there are def ways to add value to property.   Not a HUGE cash flow machine soooooo what are everyone's thoughts???