Brand new to multifamilies/REI in general - Fourplex Analysis

[Kyle Mack]

Hey Guys, I am looking at buying my first investment property. I currently live in an 8-plex (2/1 units for $625) in a C+ neighborhood. The property I am looking at is a quadplex in a C/C- neighborhood. Here are the numbers:

Asking price: 120K
Units are 2/1's, rent for $600 each
Built in 1959
Tenant pays heat and electric

Income: $600 x 4= 2400/month and 28.8K/ yearly
I used the 50% rule to cover expenses, but some of them would presumably be:
Insurance: $115
Taxes: $357
Vacancy: $240 (10%)

The property seems to some sense using the 2% rule (2400 a month rents is 2% of 120k).

Financing: I plan to live in one of the units and use FHA financing.
FHA down payment of 3.5%: 4200
Loan of 115,800 at 3.5% interest= $520 monthly payment

After 50% Rule, $1200-$520 = 680/4 = $170 profit per unit/monthly

I have just a couple questions about the property.

The owner recently bought it and replaced the windows/doors and claims that the building is in good shape.

1. Why would try to get rid of the property if he is presumably profiting 170 per unit on a monthly basis.
2. The neighborhood is slightly worse than the one I live in now. I am comfortable in my neighborhood, but not so sure about the quadplex neighborhood (although it is only C vs my current C+). Has anyone ever had to choose and been in this situation before?

I'm also hoping someone will comment on this potential deal and see what people before me have encountered or done. Thank you!!