Is there any profit in this deal.

[Oscar Almonte]

In trying to get a grip of multifamily properties investing, I know with my criteria what I am willing to pay. I have recently been looking at some multifamily that have been sold on the MLS in the area that I am focused in and I just do not see what the person that bought it is seeing after crunching the numbers. Am I missing something. Can some savvy investor shed some light. This is a 3 unit.

PP 529k

Closing cost say 2%

FHA

Rent $4,495

Taxes $9,218

Water for MF for the area $51 monthly 

Without expenses this person is only making 520ish  after I plug in the data.

When I put my numbers of 5% repairs, 5% cap ex, water 51, vacancy 8%, PM 10%

I will be losing 7 hundred and change a month and will not cash flow until year 15.

I am over analyzing or missing something.  Thank you....looking for some clarity.