New to MF investment 7 Unit

[George Romero]

Hello everyone! My name is George Romero I'm new to Biggerpockets and I'm sooo glad that this is available. Some advice is greatly appreciated for this deal I have under contract. It's a 7 unit MF that needs one unit touched up and painted along with a new fence with gate and I'm a bit nervous about going through with the deal.  I've attached the cash flow analysis for anyone wanting to give me some advice. This is in an older part of town where rent is not very high, but I think I can bump it up to $550 for each unit.

[Property Description]
Monthly Operating Income	Scenario A	Scenario B
Number of Units	7
Average Monthly Rent per Unit	495.00
Total Rental Income	3,465.00
% Vacancy and Credit Losses	5.00%
Total Vacancy Loss	173.25
Other Monthly Income (laundry, vending, parking, etc.)	-
Gross Monthly Operating Income	3,291.75
Monthly Operating Expenses
Property Management Fees	347.00
Repairs and Maintenance	200.00
Real Estate Taxes	250.00
Rental Property Insurance	298.81
Homeowners/Property Association Fees
Replacement Reserve	50.00
Utilities	150.00
Advertising
Monthly Operating Expenses	1,295.81
Net Operating Income (NOI)
Total Annual Operating Income	39,501.00
Total Annual Operating Expense	15,549.72
Annual Net Operating Income	23,951.28
Capitalization Rate and Valuation
Desired Capitalization Rate	8.00%
Property Valuation (Offer Price)	299,391.00
Actual Purchase Price	167,500.00
Actual Capitalization Rate	14.30%
Loan Information
Down Payment	33,500.00
Loan Amount	167,500.00
Acquisition Costs and Loan Fees	6,000.00
Length of Mortgage (years)	15
Annual Interest Rate	6.690%
Initial Investment	6,000.00
Monthly Mortgage Payment (PI)	1,476.66
Annual Interest	11,002.25
Annual Principal	6,717.63
Total Annual Debt Service	17,719.88
Cash Flow and ROI
Total Monthly Cash Flow (before taxes)	519.28
Total Annual Cash Flow (before taxes)	6,231.40
Cash on Cash Return (ROI)	103.86%