Sounds like a good deal, right?

[Dave Versch]

I'm looking at the following deal for a 2-family in Buffalo, NY. There are minor cosmetic repairs needed, but that's it. Both units are filled with tenants on leases. Opinions? Here's the deal:

Cost to purchase: 30K
Gross rent: $10,080 per year (840 per month)
Taxes (including sewer): $1300 per year
Insurance: $425 per year
Garbage collection: $170 per year
Vacancy allowance: $1,115 per year (based on 11.7% vacancy rate for this zip according to Sperling's)

Monthly rent comes out to 2.8% of purchase price.
Based on 50% rule I figure I'll clear about $135 per month, giving me close to $200 per month in reserves, and still over 20% cap rate if I put down 20% and finance 80%.

I should do this one, right?