10-Unit apartment deal

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Hello everybody,

I have been reading a huge amount on here over the last month or so. I currently have one rental house, but I'm looking to invest in different (but still local) lower priced down market with better yields. I had been looking exclusively at SFR in the $15-$40k range that would meet the 2% rule.

I found a small local apartment/retail commercial building for FSBO. It is 10- apartment with a retail store in the bottom. The asking price is $183,000 and it brings in gross rent of approx. $3700 per month. The building outside is pretty decent. Inside is fair also, but with old carpet in the hallways and cheap paint. I walked through several of the apartments and they are all fair/but very basic. I didn't really see any major issues off hand.

Owner has owned for 11 years and has not replaced roof and does not know when last replaced. He showed a NOI of $30k per year ($44k minus expenses including management). I have updated with what I think is more reasonable maintenance and capex and vacancy numbers. Still seems to be a good deal. I have included the image of the BP calculator I ran. I guessed on some of the closing costs.

I'm just looking for feedback. The SFR's I had been looking at I was just planning on cash purchases due to the low cost of each. With this deal I could use leverage to increase my return while having one building instead of multiple houses. I appreciate any input.