Would You Do This Deal?

[Kevin Barry]

I'm a small-time investor in the midwest (currently own two rentals) looking for feedback on a potential deal.  

Key Metrics:

Total Units - 4 (All Occupied)

Purchase Price - $165,000

Monthly Rental Income - $2,400

Projected Monthly Cash Flow - $530

Cash on Cash Return - 14%

Other Notes - All four units were renovated a few years ago so maintenance should be relatively low. I would also like to eventually move utilities back to the responsibility of the tenants. The house is located in a small college town (within walking distance to the college) and is in pretty good shape. All tenants have been there for awhile.

Monthly Breakdown:

Rental Income                            $2,400

Mortgage (25% Down; 4.75%)       ($645)

Utilities (Paid by Owner)             ($600)

Maintenance (Estimated)            ($100)

Vacancy Reserve (5%)                  ($120)

Property Taxes/Insurance            ($270)

Management Fee (6%)                 ($135)

Monthly Cash Flow                      $530

Is this deal worth it?