Duplex analysis - 2 units with potential studio in back

[Alex Polonsky]

Hello everyone. I am looking for some constructive feedback regarding analysis of my first duplex property, it has a potential studio in the back that has been factored into the monthly rental for $500. I have to go into escrow to be able to get my inspector in there. I drove the property and it is in a great neighborhood. Police station, science museum, historic downtown area and lightrail(above ground subway) are all within a mile radius. Currently occupied. $700/month x 2 two bedroom units and that studio in the back. More details in the attached report. Cap rate is super low, 2.95% compared to 5-6% in other areas but with worse conditions. I understand the expenses can increase but i've included minimum. Attaching screenshot of the BP report I

ran.