Newbie testing 50% rule and cash on cash...good deal?

[Luke H.]

This is my first post on BP! I know it's very basic, but after listening to some of Brandon and Josh's podcasts I decided to just get my feet wet and introduce myself to the BP community.  

I've only begun reading, listening to podcasts, and really diving into this within the past month, but I hope to make my first investment property purchase by the end of this year.

My question tonight should be a simple one.  Just to practice more than anything, but maybe end up finding a good property to purchase, I started searching for multifamily properties in my area on realtor.com and came across one for $49,900. I've not contacted anyone about it so all the numbers I have are from the listing itself. 

It's a small triplex with all one BR units that currently rent for $350, $350, and $375.

So $1,075 a month in rent * 0.50 is $537.50. After a 20% down payment the monthly mortgage comes to ~$235 leaving just over $300 cash flow, so barely $100 per unit. I understand that is a minimum to aim for, so this is not great, but it passes the test anyway. 

Here's where I'm wondering if I'm either forgetting something or if this is what makes it a great deal. A 20% down payment on this property, assuming I paid full asking price is only $9,980. The annual cash flow for this would be ~$3,630. That comes out to over 36% cash-on-cash return the first year.  Am I missing something here? Am I putting too much emphasis on this number? Or strictly speaking in terms of numbers (if all these are to be believed), is this a good deal?

Thanks for any and all answers in advance, and I look forward to really becoming a part of this community!