Newbie seeking help on First Triplex Deal! ;)

[Sendhil Krishnan]

Hey guys been secretly stalking (um I mean secret admirer!) of BP. I'm working on several deals currently but still tossing around this triplex deal (2/2). The units rent for $685 x 2, the 3rd unit is being rehabbed (cost included) and should be rented for $715-725 following rehab. In the future the other two units can be upgraded and should be able to get similar rents. Currently cap rate assuming current rents are aroudn 6.9%, but with assumption of higher rent of $715 is approx 8.6%. I'm seeking a long term buy and hold strategy. 

Located in B neighborhood of Little Rock

Purchase price: 196,900
Loan Origination Fees $ 1,476

Depreciable Closing Costs $ 7,876

Initial Cash Invested $ 58,577

Income Monthly /    Annual

Gross Rent $ 2,060  /     $ 24,720

Vacancy Losses $ -164 /  $ -1,977

Operating Income $ 1,895 / $ 22,742

Expenses Monthly Annual

Property Taxes $ -195 /  $ -2,343

Insurance $ -108  / $ -1,299

Management Fees $ -125 / $ -1,500

Leasing/Advertising Fees $ 0 $ 0

Association Fees $ 0 $ 0

Maintenance $ -144 $ -1,730

Other $ -175 $ -2,100  (This supposedly includes costs of water, garbage, and grounds maintenance) I'm trying to see if water can be sub-metered for the future.

Operating Expenses $ -747 / $ -8,973

Net Performance Monthly Annual

Net Operating Income $ 1,147 / $ 13,769

- Mortgage Payments $ -770 / $ -9,244

= Cash Flow $ 377 / $ 4,525

Any thoughts/comments greatly appreciated!