12 unit multi

[Sean Dawson]

'Evening!  I would like the hive's opinion  on a 12 unit multi we are looking at.  This will be our first foray into something more than our duplex's.

Via our agent the offer is now at $389900 with seller paying 2k of the closing costs.  

Rents are low for the area @ $520 per unit (2 BR 1.5 bath, half basement) Our property management company has others in  the area going for $600-$650.  I realize that the deal has to stand on its own as is though.

One unit is now vacant.  

I have figured 8% vacancy rate ($512)

Prop tax $13305

Insurance $5000

repairs/maint $3275

Cap ex $7000

Prop Man. 6% ($344)

This looks like 51.8% of gross

Mortgage I am gusstimating 25% down, 4.8% interest rate amortized over 20yrs for a payment of $1898

Total cash flow with these numbers are $1105

Do these amounts look reasonable, conservative, too low? As it stands the cap rate is 9.2%

The area would be C'ish I guess.  Nice single family neighborhood and close to shopping and freeway access.

Thanks!