First Multifamily- Am I being too conservative?

[Tyler French]

Please be patient with me as I am new to posting. If I have forgotten needed info for your input let me know.  After all the reading/practice I can muster, I have begun my first search for a multifamily in Cincinnati Ohio. 

Below is an example of a property I recently have looked into. The initial screening utilizing the 50% rule put this as a fairly solid prospect, and in getting a tour there were no red flags (brick, good condition, B or C neighborhood). However this was the first time I moved into the next step of working on a more detailed expense analysis, & after doing so the estimated expenses were far more than I expected, at almost 70-75%% of gross income.

The high expense ratio & the fact that this property looks far from a good investment surprised me a bit, and my concern is that besides perhaps the owner having to pay heat, the property's numbers are pretty typical.  The question being, am I misunderstanding something on my  approach to expenses or perhaps too conservative, potentially scaring me off from solid properties? Or is perhaps 70% expense ratio just a reality of the area I should expect? 

Thank you!

Tyler

List Price	$119,000
Down Payment	$29,750
Repairs	$500
Closing Costs	$3,000
Total Cash Investment	$33,250

Initial Screening
Gross Rent (4 Units)	$1,872
Expenses (50% rule)	$936
NOI	$936
Mortgage	$491
Cash Flow	$445
Cash ROI	16.1%

Expenses (Detailed)
Vacancy (10%)	$187
Property Taxes	$307
Insurance	$67
Gas/Electric	$150
Water (per unit)	$90
Sewer Service (per unit)	$90
Maintenance & Repairs (5%)	$94
Property Management (10%)	$169
Lawn Care (7 months)	$39
Tenant Placement Fee (per unit)	$78
Annual Tuneup/Inspection	$19
Lease Renewal Fee	$16
TOTAL EXPENSES	$1,305
Expenses %	70%
NOI	$567
MORTGAGE	$491
CASH FLOW	$76	Goal: $300
CASH ROI	2.7%	Goal: $15%