Buy zero cashflow now anticipating huge rent increases

[Michael Andrews]

I am looking at a 4 unit building that is severely hampered by low rents for the area, which is an indication the seller has not raised rents in many years. Each 2 bed / 1 bath unit has air conditioning and is a block from downtown, which should fetch $600-$650 per month, but the current rents are on average $415 per unit totaling $1,655.00 per month in GRI. After getting their profit/loss sheet the property shows an NOI of $591.

They want an astounding $189,000 for a property which would break even at around $100,000 with a 30 year 4.5% note. Assuming the seller accepts a $100,000 price, there are two units with leases coming up for renewal at the end of April, which could be bumped up to the proper rent and push this property into positive cashflow and show a 15% COC ROI. Once the other two units are renewed at the proper rent it would push COC ROI up to 30%.

If (and it probably won't happen) I can get the property for $100,000 showing the CAP rate only supports a purchase between $88,000 and $118,000, with break even cashflow at $100,000 is it worth it to wait two months for positive cashflow and up to year for the full potential of the property?