Someone else might have enough WFC that they collect more than enough in just dividends to cover their expenses, and they would laugh at your headache-laden RE investments, which they could never scale big enough fast enough to cover their expenses, whereas the click of a button get's them plenty of dividend income to live off very comfortably while compounding the rest. 

Cash-on-cash is your only metric here that may matter, and it's simply for comparing properties side-by-side and asking what the best use of your limited dollars is...Anyway,Your closing costs will be closer to 2% of the purchase price: $5,800 (unless the seller is covering this...if so, good job)Repair cost of $1,000 won't do anything...contractor fees will eat 50% of that...if you are renovating, you need to renovate to drive rents...$4k per unit will maybe do paint and carpet...a few fixtures. 

If you want to eventually live in it, the current income becomes less important, but seems like you can get to 1% if you do some repairs and raise the rent.If this is a buy and hold, the long term desirability of the neighborhood and big picture changes (is this neighborhood gradually getting better, or gradually getting worse?)

When it comes to the skilled trades (plumbing, HVAC, electrical), I’ve got my bases covered.

(before inspections of dirt work i.e. ground cover inspection, rough plumbing/electrical, framing/structural, HVAC, and so on.

It was bought at asking price, no "as-is" clause, and does have a warranty provided by the seller but I don't think that covers water damage.

As it stands it would be a deal here in NJ market..good luck, and post some pictures if you can.thx,Chris

A condo has an HOA fee that covers it.

As long as it makes sense as an investment property, meaning, I am hitting my personal cash-flow and ROI goals while covering all the expenses you have accounted for in your analysis, then it is a WIN, and I move forward with the deal.

My leases say that the renters has to cover the first $50 in repair costs.