Multifamily Deal Analysis - Charleston, SC

[Rich C.]

I'm looking into my first investment property in downtown Charleston, SC. After searching and analyzing for 8 months, this is the closest that I have come to a property that makes sense.

-Short sale duplex which caters to grad students and young professionals
-Building constructed in 1930 and in good condition
-Majority of properties here built 1860-1950
-Cap rates for the downtown area generally 6-7.5%
-Market is hot and multiple cash offers are abundant within first few days

Contract list: 340k, sold in 2006 for 444k
Contract price: 318K cash, which is probably 97% of FMV
Current rental income: 3,000/mth
Vacancy: 5% estimate based on other investors
Taxes: 5,000/yr
Insurance: 2,600/yr
Utilities and trash: paid by tenant
Maintenance: 5,040/yr (assuming 14% gross rent)
Contingency: $500/yr
Property management: plan to do own right now, yet market is 9-10% of rent
Mortgage: Plan to finance after purchase, 25% down at 3.70% 30 yr fixed

This seems to yield a ~6.5% cap rate and ~9.4% CoC return. If I hire a property manager, which is not the plan until several years in the future, returns are not great at ~5.5% cap and ~5.5%.

Questions:
1) Would you still figure a property management fee into the numbers even if managing yourself?
2) What are your thoughts on my analysis?