First deal so I need some feedback

[Kevin Scott]

So this would be my first deal and I would like some honest feedback. I need to know if I'm biting off more than I should chew.

Triplex asking $220K
2B/2Ba each unit
Good neighborhood and schools
Rents 1x$600 2x$650 = $1900 (1 renter 13+ years, 1 renter 4+years, 3 ends 12-31-13)

RENT $1900
Expenses a month
Mortgage $944
HELOC (20%) $153
Vacancy $57
Taxes $195
Insurance $67 (guess)
Maint $294

NOI $190/month
Cash on cash 11.75% including $15K repairs

Repairs $15000-$25000, but they don't all need to be done at once. Current owner has neglected some things so slowly I would bring things up to date. People are living there currently but I'm not a slumlord so I would want them to have nice places. New roof 2008, paint 2013, HVAC < 5 years old.

My idea hope would be to get it for around $182K so NOI is $379 month. cash on cash 24.4% including $15K repairs.

So my one huge fear is that it does need some work. Is this something I should pass one because its my first property. I have not made an offer or had an inspection. I just need to know if I should walk away.

Advice?

[Ned Carey]

You have your expenses at 32%, that is very low. Vacancy is listed at 3% unrealistic in most areas.

You haven't accounted for;
Reserves for future capital improvements
turnover costs
management fees
pest control
Common electric, hallways etc.
permits licenses and registrations
any inspections required to get the above
and more I haven't thought of.

A word about management.

Ahem Let me step onto my soap box . . .

You MUST count the cost of management. There is nothing wrong with managing your own building, no one will manage it as well as you would. However you CANNOT count the savings of managing your self as income from the building. The money that comes from managing it your self comes from the time and effort you spend managing.
It does not come from the investment in the building. That should be extra cash in your pocket.

You are overpaying if the building will not support property management for the cap rate you expect. Good luck - Ned