Help Analyzing the deal - am I doing something wrong?

[Rich Lopes]

I have been researching many deals in the MF space but every time I run the numbers, I get Cash-on-Cash returns numbers that just doesn't make any sense.  

Here's one deal that I would like to get some perspective from BP community.

1. 10 Unit (mix of 2 & 1 ) in Northern CA
2. Asking Price - $745K
3. Current Avg. Rent: $625 / month / unit
4. Owner Paid Utilities: $905 / month 
5. Assuming Property mgt - 8%
6. RE Taxes - 1.14%
7. Insurance - $2000 / Yr
8. Repairs & Maintenance - 4800 / year (potential, could be more or less)
9. CapEx: 3500 / year (Potential, could be more or less)
10. Assuming - 30% down with conventional financing at 4.5%, I get a COC of just over 1%.

Aside from any upside potential in rents with some rehab, Why would anyone want to buy into this deal from cash flow perspective, or am I missing something crucial in running my numbers?  I have been running into the same dilemma with every other deal I am looking at. 

Is there anything I could do to make this deal work other than offering lower price?

Thanks!