Is it ok to buy a house if the cash on cash is great, but...

[Edward Heavrin]

What are your thoughts on buying a property that has amazing cash on cash return (30-40%), but doesn't meet the 1-2% rule or any other rule for that matter. Basically, I can buy a Triplex with an FHA Loan at 3.5% down. Property is in pristine condition, so no rehab necessary. Because I'm only putting down around 10k, it makes the cash on cash return very appealing.

Is it ok to pay a bit more if the I'm getting it for practically nothing? It still cash flows about $400/month (after accounting for vacancy, cap ex, and other expenses) but the overall loan is a bit more than I'd typically go for. Thoughts?