Numbers: what am I missing?

[Dylan Grabowski]

Looked at a property this weekend in Fruitvale (Oakland area), within walking distance to train, nice quiet neighborhood.

Price: $600k

Unit 1: 3 bed/1 bath renovated and vacant, really nice unit, open and airy, 1,150 sq ft. $2,600/month.

Unit 2: 3 bed 1 bath, current tenant says they'll "leave by May", unit is thus far sight unseen, 750 st ft. $1,400/month

Gross Operating Income: $48,000

Expenses: $13,395

Net Operating Income: $34,605

FHA downpayment would be $21k. I'm a first time homebuyer... Seller willing to accept FHA.

This is one of the first few deals I'm evaluating, what am I missing? Seems to good to me, good cash-on-cash return...

It'd make most sense to rent the renovated unit for $2,600 a month, and live-in/renovate the second unit once the long-term tenant "moves" in May. Of course, tenant may not move. 

So, BP. What am I missing, not thinking about, or what do I not see if this is a good deal?

Thanks!