Multifamily in NE Minneapolis Minnesota

[Sherry O.]

I am analyzing a potential deal in a B neighborhood. It is a 30-year old four-plex with the asking price of $415,000, NOI of $29,000, putting the property at 6.99% cap rate, cash on cash return is around 10%. There is a very similar four-plex in the same area that was just sold at $380,000 earlier this year. And it had some updates done before selling.

Because I am new to investing and kind of risk-averse, I am more leaning towards buying in a safer neighborhood and learn how to manage/maintain a rental before buying fixer-uppers that can create higher returns.

My feeling is the asking price is too high, if I can negotiate and get it down to $370,000, it would be a workable. Is it an OK deal? What should I look out for or consider before making a decision?