4 Unit in Chicago (Bridgeport)

[Bryce Renicker]

Hello everyone, hoping I can get some feedback on a 4 unit I am negotiating on in Bridgeport. I feel like the purchase price is a really good deal but I still cannot get a cash flow based off of my numbers. Hoping to get a little feedback on my numbers and to see if anyone has insight in the Bridgeport neighborhood that I may not. 

Purchase Price - $445K with 10% down ($44,500)

Principle and interest (7.5%) - $2800
PMI - $197
Taxes - $705
Insurance - $155
Water - $150
Common Electric - $25
Vacancy 5% - $250
Maintenance 5% - $250
Capex 5% - $250

Total Monthly Expense = $4785

Monthly rent - $5000  - approximately $1300 per unit of (3) 2bed/1bath and $1100 for (1) 1bed/1bath

Rehab cost estimated at $5K per unit so about 15-20K investment in repairs 

So total basis of down payment, closing costs, and rehab is $65,000-70,000

Cash flow = $215/month = $2580/year = 4% cash on cash return. 

Im pulling my hair out thinking this is a bad deal but its well within the 1% rule. Is cash flow really just this hard to find right now or am I missing something ? It feels like a lot of work and risk for such a low return, even though I do know there are other benefits such as loan paydown, tax write off, potential for appreciation, etc. Would love to hear others thoughts and thank you so much.