Evaluating a Possible Rental Property

[John R.]

Greetings All,

I am evaluating a property to purchase as a rental. It is located in a suburb of Philadelphia, PA and is listed at $114,900. It has been on the market for 186 days and is a double lot that is supposed to be subdividable. The seller is describe as motivated. The first floor is one unit; is a 2/1 and is currently rented through 2/28/2014 at $675/month. The second and third floors make up the second unit, which is a 3/1 and is rented through 1/14/2014 at $870/month. It is described as VERY easy to rent with new carpeting and paint. There is a one car garage that is separately rented at $75/month.

The MLS report indicates the following:

RE Taxes last year = $4,049
Gross Annual Inc = $17,040
Total Annual Exp = $4,049 (Is this the taxes? Seems weird that it is te same exact number. If this is the taxes, then what about OTHER expenses?)

Net Operating Inc = $12,991
Gross Rent Mult = 6.74
Cap Rate = 11.31

I have no doubt that I am just getting started with my analysis; what else do I need to look at, research and learn?

I am working on comps for the area, but wonder why this property has been on the market for so long?

Thanks in advance!!
John