Portfolio of family homes analysis

[Simon Leger]

Hi,

Since I'm new here and I dont want to make stupid beginner's mistakes, I would like to get people's advice on something like this :
http://www.loopnet.com/xNet/MainSite/Listing/Profile/profile.aspx?STID=&LL=&LID=17813031&SRID=3065307937&PgCxtGuid=a29353b7-f9c5-4f3c-a547-948ae9f17334&PgCxtFLKey=Profile&PgCxtCurFLKey=Profile&PgCxtDir=Up&EBrokerSent=Y&MessageSent=
It is 12 homes and 4 duplexes (20 units) with 25k sqft total asking 650k (let's assume it can be brought down to 580k) 100% rented for 14,220 per month (or 170k per year). Expenses with management company (i dont want to do that) is max 50% of gross rents so 85k per year which leaves with 85k per year before financing costs.
This is a 15% cap rate on the deal value if paying cash.

With financing it is much more...

What am I missing here ?

- I realize these are low income rentals so potential issues with tenants, vacancies...
- Condition of property is fair but there will be some maintenance (there is a brand new C of O so condition can not be that bad ?)
- I dont know the area well, is it declining like crazy there ?

Any comment is welcome, thanks in advance.