Is this really a good deal?

[Lovorn Brown]

I found a 4-plex, seller asking $140K; currently has renters, and monthly rent is $2600. Landlord is paying water and sewage. Taxes last year were ~$1800, and I'm hoping to find insurance for $3000 or less. Taking 5% for vacancy, CapEx, and repairs, plus 10% for property management, using the bigger pocket calculator shows cash flow as about $700. The house was built in 1956, not in the greatest neighborhood, and probably doesn't have great appreciation potential. That's it, is this really a good deal?

[Jaron Walling]

It's a great deal based on the numbers you gave. You're smart because you're questioning why. I'd guess finding good tenants is tough. I'd question the condition of the property. You need to look at the BIG TICKET items. Roof, HVAC, electrical panel, windows, foundation, potential high dollar problems. 

The property could be updated or a money pit that eats $700 cash-flow for breakfast.