2 family deal

[Paul Kogan]

Hi all,
please help me evaluate this deal. Legal 2 family with 3 electrial meters and "maid's quorters" in the backyard. It's a bank REO.
Asking price - $349,999.
Cost of repairs - $25K - $30K
My offer price - $230, hopefully they bank will let it go for $250K
My friend owns a 3 family house around the corner with $4800 per month rent roll. I can get around the same for this house.
So, here is my calculation -
Gross rent ~ $4800
Mtgt amt ~ with 5% down, $248,500
Cash out of pocket $12.5 down + $10K closing + $30K(repairs) = $42.5
taxes - $1300 per year
ins - $1200
monthly pmt - $1489 + $220(taxes +ins) = $1709.
Expenses 45% - $2000 per month.
Net income - $1091 or $363 per unit.
Cash ROI - ~25%
What do you think?

Also, 2 questions.
1. Would it make sense to claim this prop as OO (I alredy own a house)
2. Would section 8 have a problem with renting a 3d apt that's not technically "legal" but has a separate electrical meter?