Help Analyzing Deal

[Joel G.]

Hey All,

Looking to make my first offer today and I'd like to run the following deal by you all: 

Historic 4-plex (2 buildings). One 2bd/1ba ($725/mo), Two, 1bd/1ba ($630/mo), One, 1bd/1ba ($590/mo). List Price $255k. Tenants pay electric, owner pays water/sewer/trash. No repairs appear to be needed (looks like seller made a bunch of renovations). Property is in C+ to B- neighborhood and I would plan to manage the property. 

What I'm planning on offering: $220k

Down Pmt 5% = $11k

Expenses (monthly): 

Monthly P&I = $1,059

Hazard Ins: $100

Mortgage Ins: $117

County Taxes: $112

Water/Sewer: $220 (high range for the past year according to water company)

Vacancy: $257.5 (10% monthly rents)

Repairs: $129 (5% monthly rents)

Other: $25 (buffer)

Total Expenses (including P&I) = $2,019

Misc Closing Costs: $3,000 (guess)

I'm calculating the following: 

Monthly Cash Flow (income less expenses): $556

50% Rule: $228 cash flow ~ $57 per door

Cap Rate: 8.8%

Cash on Cash ROI: 20% (using 50% rule for annual cash flow

Rent as a percent of purchase price: Approx 1.2%

Debt Service Coverage: 1.5

What are your thoughts? This will be my first property (will owner occupy) and don't want to get in over my head. The purchase price feels a bit high, but I'm thinking the cash flow should make it worth it. Also, any other expenses I should be including? 

Thanks for the help!