Rehab SFH on College Campus

[Ben Reiss]

Good Morning Everyone,
I have asked a few questions on BP and gotten some good advice. I have done some marketing and found a few things. I bought a lot with some title issues I cleaned up for 18K all in that is now getting low ball offers around 65K after owning it about a month. I want to hold this and build on it in a year or two and have a nice cashflowing triplex.
I currently have a new construction duplex up the block that is doing well. I am looking at another building that is a SFH two blocks from my Duplex. It is currecntly rented at $1,800/month to 4 college students. I think this is actually a bit low and could be raised to at elast $2,000 for the upcoming school year. If it was earlier in the rental season I think it could push $2100-2200. It is a well done rehab (done in '10). The guy originally asked for $180k, we have coem down to $170k and I am mentaly debating the deal. mostly because it stretches me a bit. I owe a chunk in taxes since I sold some stock and a house I had the first time home buyer loan on.

So I guess I am just a bit gun shy of taking on more debt right now. This house will be throwing off about $800 after PITI and a couple hundred in capital reserves.

Rent = $1,800
PI after 20% down = $730 (roughly depending on rate but likely slightly less)
taxes = $340 / year so $28.33/month (10 year abatement)
insurance = $1520/year so $126.66/month
(this is from the same company who does the duplex which is high but it's in the city and it's a commercial policy since it is student housing)
I self manage
Everything looks like it is in good shape and the gut rehab was done only about 3 years ago so all new systems.
I am putting aside $200 month for capital costs and figure I will run about $800-$1,000 at turnover.

So net = 1800-730-28.33-126.66-200 = $715.01

Anything I am missing?
Does this look like a good deal to anyone else?
The Duplex throws off about $2,000/ month after putting 10% aside for capital expenses and all misc costs.

I am going to spend the next year paying down debt, paying off this tax payment and basically getting back to having a nice 1 year cash cushion. Then plan on saving to build the triplex on the lot.
Thoughts on this plan or anything to point out as to why this is not a good idea.

Thanks,
Ben