4 plex second (third, fourth, etc..) opinions

[Ian Skelton]

Hey BP. I am learning analysis and want some second (third, fourth) opinions on a Brick Quad with (4) 2 bedroom 1 bath units. I would probably call this a C+ area. This is a buy and hold. Also, thanks in advance for reading all this...

Asking: $195,900 (obviously I try to get it for less, but I start with this price and see where I am)

Rents: $600 - $650/m per unit (estimated)

Taxes: $2,210/y (2016)

Insurance: $2,000/y (estimated)

Maintenance: 10% = $240/m

Cap ex: 10% = $240/m

Management: 10% = $240/m

Vacancy: 5% = $120/m

Mortgage: 30 years at 5% with 25% down = $790/m

Money borrowed from a HELOC = 20k = payment $100/m

So...

Gross Scheduled Income = $2400/m ($28,800/y)

Expenses = $14,290 (tax + ins + maint + cap ex + mgt + vacancy)

Net Operating Income: $14,510 (GSI - Expenses)

Debt Coverage Ratio = 1.9 ((GSI - tax - ins - mgt - vacancy) / debt service)

Debt Service = $9,480/y + $1,200/y (HELOC)

Net Income = $3,830/y OR $319/m which is $79.75 per unit

How does this look? What have I missed. Also, I will say that one concern is that the cash I need to close is somewhere around 52k (ouch). Very painful but doable (have to borrow from a HELOC)...

So cash on cash is: around 7.3%

It pretty much takes me out of the market for a couple years to recoup the cash invested (If I horde money like Scrooge). So is it worth it or should I keep looking for something cheaper that gives better cash flow and better cash on cash. I think it starts to look decent at 170k or less & 650/m. At what price would you (BP community of investors) buy this or would you...