Should I do this deal or not???

[Grant Edwards]

Hey everyone! I would like to get some opinions on whether or not I should do this deal. It would be my first investment. Here are the details:

It is a triplex for $32,000 in a low-income area in the Midwest. Property was built in 1900. All units are currently occupied with tenants that have all been there at least 2 years. Rents are $465, $465, and $450 for a total of $1380 (over a 4% deal).

Owner pays utilities. He sent me an expense sheet with all the utility bills from 2016, which along with taxes and insurance add up to be $590 on average per month. I calculate that with $250 per month allocated towards repairs and CapEx, $100 per month for vacancy, the $590 per month in utilities insurance and taxes, and about $160 for a mortgage payment ($25,600 at 6%), I would still cash flow almost $300 per month. I would plan on slightly raising rents to make sure I'm cash-flowing at least $100 per door.

My concerns are the possibility of having CapEx hit me early on since it's an older property, and also the quality of tenants I'll have since it's in a low-income neighborhood.

Should I do this deal? Why or why not? And is there anything in particular I should watch out for?

Thanks in advance to anyone who decides to give me their advice!