Buy & Hold on 2 Homes

[John Flanders]

Hi All - I'm looking to purchase 2 homes totaling $600,000.  Together they would generate gross rents of ~$5,300/month. After all was said and done with mortgage, ins, taxes, misc expenses and a mgmt fee we'd cash flow ~1.5k/mo between the two of them. 

I know I'm not even hitting the 1% rule, but the properties are in an area of town that's incredibly predictable and vacancy is not a worry.  Both of these properties have been rented for 10-15 years. I'm curious how people evaluate income taxes on top of the monthly cash flow to determine if something is a deal they'd move forward on or not.  

Looking at the numbers, I feel like this is a good investment. What would people be wary of? What am I missing?