Chicago section 8 Triplex deal? $189k - $43k gross

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Hi guys,

I'm looking at a deal in Chicago. It is a newer triplex (2008) at 1344 S. Karlov Ave in Chicago. The one caveat is that these are all section 8 tenants, which I have never done before. I know some people scare away as I've heard all the horror stories but I'm just looking at the numbers & the area.

Here are my numbers

Price: $189,000

Monthly Rent: $3682

Maintenance: $150/month

Management: $368/month

Taxes: $300/month (Don't know how accurate this is in the city of Chicago)

Insurance: $100/month

Landscaping: $100/month

Utilities: $300/month (owner pays water)

Total Expenses: $1318/month

Mortgage: $$859 (5.5% w/ 20% DP, 30yr)

NOI: $1,505/month

Cash on cash: 41% (assuming 3% closing costs).

Cap: 15.07%

GRM: 4.28

To me this seems great, but also too good to be true. Anyone know the area? Is this in a war zone?

Thanks!