Going against the grain. Investing with low cash flow.

[Michael Costanzo]

I am a newbie to the investing world. I have read many books on the topics, talked to many brokers, etc. My specialty is in real estate insurance so I know a little bit, but from a different angle. The holy grail that I see held up on this site is cash flow. My question is a bit nuanced. 

I am looking into house hacking. The problem is my market does not allow for that when investing for the type of returns I hear about on this site and podcast. When I read books like "Investing in Duplexes, Triplexes, & Quads by Larry Loftis or Buy and Hold by Schumaker they tend to hold different philosophies about long term investing in real estate. I am not in it to cash flow 87654% a year and quit my job tomorrow. So lets get down to hard numbers. Looking at a duplex in a very hot emerging market. Here are the stats

Purchase price 340,000

Each unit has 2 beds and 2 baths

Units rent for 1350 per unit- has been fully occupied for the past two years (I would be the other tenant)

Financed with an FHA Loan - all in mortgage and insurance payment of $2100.00

Constructed in 2008 with literally nothing left to do on the property- it is in phenomenal shape.

Tenants pay all their own utilities- this property was built to be rented. 

Even if I put away $250.00 per unit per month for vacancy, repairs, maintenance, cap ex, at the end of the year we have $1200.00 left. With an 11k dollar investment that is over a 10% return. This property carries a high monthly mortgage insurance of 230ish dollars which when we refi the property 3-4 years from now will drop off and we will be looking at $4k a year from this property before taxes without raising rents etc (they are rising around $25 per year for the last 3 years). 

Thanks for bearing with me on this but I am trying to see the downside to this. Its either do this deal or rent for 1450 per month. Sure this isnt cash flow city but it gets me started and has to be a step better than purely renting until i find some unicorn deal. 

Please pick this apart! I want to know what I am missing.