Need help evaluating a "too good to be true" triplex deal

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Hi All,

I have an offer from a private party and it's not listed on any websites yet. Long story short, I befriended a 75 yr old woman at a dog show and she brought me this offer. No official cap rate or NOI yet.

It's a triplex in a gentrifying town. She lives in 1 and rents out the other 2. Each unit is 2 bed/1bath around 1000 sq ft with a massive private yard for each unit. Her late husband remodeled the 2 rental units in 2019 and they look fantastic. I have toured them and they have brand new LVP floors, trendy white kitchen cabinets, quartz counter, SS appliances etc. New bathrooms, fully tiled. The rent is $1000/unit/mo. All utilities included. No extra pet rent even though both renters have multiple dogs. 2 parking spots per rental. Roof is 9 yrs old.

The husband was planning to remodel their own unit in 2020, but he unexpectedly passed away. Anyway, the wife does not want to deal with being a LL and wants to sell and buy a senior apartment. 

Per my research, the base rent for a similar apartment would be $1200-1400/mo with additional pet rent. Utilities extra. If I adjust the rent to market, add on RUBS utilities and pet rent, we are looking at close to $1500/mo rent. I will need to remodel her unit, but I have the budget and know-how. Renters are month-to-month,

I am still trying to calculate the operating expenses, but even with 20-25%, it's a great deal with the asking price of $525,000. I feel like this is too good to be true? What should I be looking at (outside of an inspection)? She is quite inexperienced and told me she basically got an allowance from her husband for 55 years and can't handle money and doesn't understand credit cards. When I asked her why she picked the asking price, she said the senior apartment costs $500k and she wants a "bit extra."

How do I evaluate this offer? I have a basic, hand-written rent roll and a huge box of her husband's files that I am still reviewing. I will get an inspection done. What else should I look for?

Finally, if this is the real deal, should I send her to agent to appraise the property? I think she is asking below market and I feel a bit guilty.