Looking for experienced deal analyzers for this property.. Help!

[Russell Pitts]

Hi all, I'm close to pulling the trigger on this property in Chicago. I'm going through a turnkey provider.  The renovation has already been done and the property will be tenanted with a section 8 tenant.  I have a bunch of questions to ask the seller, property manager, etc. but wanted to get your advice on this "deal".

Location: The property is in the Hazel Crest area of Chicago.

Property: 3bed/1.5 bath, split level, with 2 car garage.  Built in 1931. 1,515 sq feet, 19k sq feet property.

Numbers:

Purchase Price:	$120,000
Monthly Rent:	$1,725
Est. Property Taxes:	$324
Est. Insurance:	$83
Home Owners Assoc. Fee:	$0
Property Management Fee:	$144
Vacancy (7%):	$121
Repairs (5%):	$86
Total Monthly Expenses:	$758
Est. Monthly NOI:	$967
Cap Rate:	9.67 %

Numbers:

Down Payment	24000
Financing Fees	4000
Closing Costs	2500	Monthly Mortgage Payment: $671 (@7.5%) Annual Cash Flow ($967-$671)*12	Cash On Cash Return
Out of pocket	30500	3552	0.116459
Reserves	5000

I do know that the "fees" are high, but that's mainly due to some credit issues of mine which will be resolved in 1 year's time. But, even with that aside it does reach my goal of $300/month cash flow with a minimum of 10% cash on cash return.  As well, after year 1 I will refinance to a conventional mortgage to get even better numbers.

Any advice would be much appreciated!!!