Three Unit Multifamily Question

[James Edwards]

Just discovered a property locally while looking at single family. Listed at $145,000, assessed at $112k.  Been listed a year and started at $165,000. 

Built it 1946, Converted into 3, 2 bed 1 bath, units. Supposedly HUD Approved Recently,

Comp Roof, and Wood Siding.  Appears in pretty good shape from an online search. 

 Rent for the property shows $2,400 per year. 

Tax $1,200 per year. 

From a quick breakdown I'm seeing that it should cashflow around $600 per month.12% Cap Rate, and around 25% cash on cash. 

The deal seems pretty attractive, and the seller appears very motivated to make a sale.  Is there anything I should check in particular as I'm suspicious of an investor giving up something that appears to cash flow so good.  

It is also located in another state, albeit fairly close to home, so that would add a bit more complexity I would believe.  Where would you come in with an offer? 

Thanks

[Michael Badin]

Find out why he is selling.  There could be any number of good reasons.  Maybe they want out of the business, maybe they inherited the property, maybe they want to buy a larger property and need the money.  The reason they want to sell could help.