Am I overthinking this deal?

[Jose Goncalvez]

Hi everyone, 

I would like to get an opinion on a deal I have under contract, I have been a bit hesitant due to the interest rate that I am getting on this deal. I may be overthinking too much, feel like I'm stuck on analysis paralysis, so any input I can get will be helpful. 

This is the property info:

Located East side of Hollywood, FL

Fourplex consisting of (2) Studios and (2) One Bedrooms

Property is in good shape but outdated, needs: (4) new bathrooms, fresh paint, maybe windows 

Current rents are $4,150 total

Market rents are $5,600 total (Conservative) 

I would be inheriting tenants, so I would have to go through the process of vacating the units, renovating, renting. 

Purchase price $655,000

Loan terms: DSCR with 20% Downpayment at 8% interest rate

I estimate insurance to be around $4,500-$6,000 / year

Taxes around $10,000-$11,000 / year 

Based on this numbers, the property will not cash flow on day one. After raising rents at conservative numbers it will cash flow about $500-$600 total per month. 

I am not even calculating for vacancies, management, etc. Not to worried about it because I will be self-managing and I know I can get them rented pretty quick on that market. 

I think the numbers are not super attractive, nor terrible, and what keeps me engaged is the future appreciation and rent increase over the years. 

My plan with the property is to hold it as a rental but would like to recover as much as possible from the capital invested while keeping it cash flow positive. 

I have experience investing in condos but I feel those are pretty straight forward and easy to do, this would be my first time getting into this type of deals. 

Any thoughts on this?