Worth a look?

[Account Closed]

Have found a property, 8 units, for sale in an area I know well. These are the numbers offered up by the seller.
I'm a complete newbie and am hoping some of you with experience can offer your impression of the numbers and whether this would be worth looking at, or if not, at what price would it make sense?

8 Unit Apartment
(Accurate as of 3/1/09)

The 7 two bedroom units are at $695/mo and the efficiency unit is at $525/mo.

** All tenants are on month - month leases.

** The average rents for 2 bedroom units in the area is $733/mo.

This property is available at only $499,000.

It is the lowest priced apartment per unit in the area.
Annual Income:
Gross Scheduled Income $64,680
Vacancy (5%) $3,234
Other Income $1,200
Gross Operating Income $62,646

Annual Operating Expenses
Property Taxes $6,670
Insurance $1,822
Property Management $0
Maintenance & Repair $1,000
Utilities $5,950
Services $4,280
Other $1,000
Annual Operating Expenses $20,722

Net Operating Income
Gross Operating Income $62,646
Annual Operating Expenses $20,722
Net Operating Income $41,924

Annual Cash Flow Before Tax
Net Operating Income $41,924
Annual Debt Service $34,818
Cash Flow Before Tax $7,105

Initial Investment
Down Payment (25%) $124,750
Closing Costs (3%) $14,970
Total Investment $139,720

Proposed Financing
1st Mortgage $374,250
Interest rate 7%
Amortized over 20 years

Cap Rate 8.4%