First time investor presented with opportunity of 5 rentals w/ cash flow

[Account Closed]

All:

I am new to real estate investing.  I am an attorney by trade (and will be begin an MBA in the spring).  Through my connections, I have been presented with an opportunity, and I would like anyone's input.

Here are the basic numbers:

Subject properties: 5 rental properties 1) 2/1 with flooring, paint, and bath updated ($500/mo), (2) 3/1 completely renovated $650/mo, (3) 1/1 completed renovated ($350/mo), (4) 2/1 fenced-in backyard and garage ($650/mo), (5) 2/1 $650/mo

Asking Price: $189,000

Gross Rent: $2,800/ month

Operating Expenses: (1) Taxes $133/mo (2) Insurance- $133/mo, (3) Mortgage (maybe $800/mo), (4) property manager $280/mo

Total Operating Income: $1,346/mo

Although the rental income does not satisfy the 2% rule, it seems, based on the numbers, that the rentals would cash flow?

My questions:

1) Should I consider it?

2) If so, how do I know how much to keep in reserves in the event of an issue? I understand there is a 50% rule, but does this include taxes, insurance, mortgage, etc?  I am thinking 25% of my total rent.

Thanks for your help!