Evaluate this 6 plex.

[Jarrett Finley]

I have yet to invest in any rentals but have be looking and learning over the last 4-5 months. I have found one 6 plex that looks promising and I would love to hear some feedback from some of the more experienced investors and landlords. This is what it looks like.

6plex
Sales Price $325,000
Loan Amount $260,000
Interest Rate 7.125%
Term in Years 30
Loan to Value 80.00%
P & I $1,751.67

(This loan is through an Alaska housing program for which both this property and I qualify for.)

Total Rental Income $57,600
Less Vacancy 10.00% -$5,760

Adjusted Gross Income $51,840

EXPENSES
Taxes $4,584
Insurance $2,580
Utilities including Refuse/Cable $9,661
Management $4,725
Maintenance & Repairs $1,000
Replacement Reserves $1,800
Miscellaneous $1,000

Total Expenses $25,350

Net Operating Income $26,490

Total P & I $21,020

Net Cash Flow $5,470 = $455 per month

I know that the cash flow doesn't look that great with the property management cost but it is required to be factored in for this program. I would be doing the management myself so the net cash flow should be around $850 a month. It seems like a fairly good deal to me or is it just the big down payment? Thanks for any help or insight you can give to this rookie!

Jarrett