4 Family Deal Advice

[Eric Castelli]

Looking at my first four family and would appreciate feedback on this deal.  Property is an old, well-built brick building in the Midwest built in 1870.  Flat roof replaced in 2008 and new windows in 2008. Plumbing and wiring have been updated, although using fuses and not circuit breakers.  Two units have central heat and air.  Two units have central heat but window AC.  Units are in okay condition but not great.  Area is mostly residential and near train/metro station.  Crime low. Three long term tenants but one unit just vacated (they are filling now).

Here's the numbers:

Price $137,000.00
Down Payment $27,400.00
Loan $109,600.00

Expenses
Mortgage $588.36
Property Taxes $238.00
Insurance $100.00 (estimate)
Landscape $50.00
Utilities $230.00 (owner reported)
Property Manager $193.50 (9% estimate)
Vacancy $129.00 (6% estimate)
Maintenance $129.00 (6% estimate)
Cap EX $129.00 (6% estimate)
Total Monthly Cost $1,786.86

Revenue
Rent $2,200 (4 @ $550)

Cash Flow:
Monthly Net $433.14
Yearly Net $5,197.72

Return Calcs
Monthly Rent Multiplier 1.57%
Cash-on-Cash Return 18.97%
Cap Rate 8.95%

I am investing solely for cash flow and don't expect any appreciation in this area.  Would you do this deal?

Look forward to your thoughts!

Thanks,
Eric