Need assistance analyzing a deal - First Rental - Multi-Family

[Jose B Mendoza]

Hello,

I recently found a rental property for sale that seems like a great investment opportunity. However, this would be my first real state investment and I'd really appreciate if you could help me identifying any potential risks. This property is located a few blocks away from an Ivy League school and from the city center. It's a 3 story building; 1st floor is a commercial space, and 2nd and 3rd floor are apartments. Both apartments have been recently renovated and all 3 floors are rented. I emailed the agent and this is the information he provided:

Asking Price: $359,000

Total Rental Income: $3,000

Taxes: $6,828

Down Payment: ~$40,000

There is not much rehab to be done besides basic cosmetic updates on the outside. To me, this property is a great investment because of immediate cash flow and appreciation. Based on a quick analysis, it could generate $500 cash flow. 

Your input will be greatly appreciated.

Thank you!