Retail Triplex?

[John G.]

Hi,

 I have never bought a rental property retaiI.  I have always bought my rentals as forclosures or distressed properties and fixed them up myself and rented them. 

 This time a round I found a triplex that is all fixed up and fully rented. I am having a hard time justifying paying double what I have in the past because its all fixed up. (I think my purchase price 95K is still in the -retail realm.

I don't think this property is going to gain a lot in value over the years as these multifamily properties around here just don't sell fast at all.  Is the cash flow enough to warrant such a purchase. 

The details:

Triplex, 2br 675, 2 br 575, 1br 400

negotiated purchase price 95k. Rents for $1650/mo. operating expenses $542/mo (figured high). Mortgage expense $527/mo.

Its an 1898 old home but fixed up fairly nice.

Came up with $580 of cashflow (after mortgage payment), 13% cap rate, cash on cash ROI of 22.66%. I just don't know what type of numbers I should be looking for when buying a ready-to-go retail property.

Any help on this one would be greatly appreciated.

John