Checking Numbers on First Investment Property, Would you do it?

[Dimitri Metropulos]

I am new to investing and am looking for my first deal.  I think that I have found a good multifamily property with 2 units both of which are occupied currently.  Both of the tenants have been there for a long time and look to be taking very good care of the property.  I am a little hesitant, but very excited to make my first deal and want to ask you (the experts) if you would invest in this property given the numbers I have. The loan would be for $82,500 over 30 years.

Purchase Price: $110,000

Down Payment: $27,500

Gross Monthly Income: $1,525

Expenses: $815 monthly

-Mortgage $415

-Property Tax $136

-Insurance $35

-Vacancy $152.50 (10%)

-Repairs $76.25 (5%)

Net Monthly Income: $710 or $8,520 a year.

The Cap Rate = $13,500/$110,000 = 12.27% *note I did not include the mortgage expense of $415 in my calculation.*

Cash on Cash Return = $8,520/$27,500= 30.98%

With that basic math I see positive cash flow of $8,520 which would pay off my loan in about 9.6 years which I think is a pretty good number. Should I be looking for a more aggressive ROI? Am I missing anything in my calculations? If it were your first property would you do it? What are the margins you look for in your investment properties?

Thank you in advance for all of the help!