Deal Analysis on a Fourplex - Advice Needed

[Mitchlyn D.]

Hi everyone, i need some advice on a D+ neighborhood.  This fourplex is not in the best neighborhood and not in a war zone either.  I drove by and spoke to a few neighbors and they said the neighborhood has issues like all other neighborhoods but nothing major such as;  drive-by or shoot outs.  

The property is fully rehabbed and the investor says 3/4 units are rented @ $550.  He is asking $145K for the property but based on the area, i'm considering an offer of $100K because of the risk.  He mentioned he is trying to liquidate this property so he can use the funds on another purchase. Based on the numbers, I was very conservative allotting for 10% each month for vacancies, repairs, capex and property management.

My question to you is, based on the below numbers and information, do you think it is a solid investment? Would you offer less or not offer at all?

Below numbers based on this purchase price:  $100K

Quadplex:  2/1

Neighborhood:  C-

Rent:  $550 each @$2200 per month

Expenses:

- Vacancy: $220.00

- Repairs: $220.00

- CapEx: $220.00

- Management: $220.00

- Insurance: $100.00

- Property Taxes: $50.83

- P&I: $405.80 

= $1436.63 (Total of Monthly Expenses)

Cash flow 

=$763.36 (Cashflow per month)

Cap Rate

= 14.03 (Cap Rate)