Officially a speculation market!!

[Luke Mccandless]

This "investment" property just went pending at 643,000 here in Oakland. It's a 2 unit each 1 bed 1 bath. Realistic rent on each unit is max $1800.  $43200 gross - taxes of $9452 (actual tax for this house) insurance of ~$1500. Maintenance, capex, utilities, and vacancy of ~ $9000 (napkin math ).

Net : $23248 for a cap rate of 3.61%. Assuming max market rents and low Maintenance, capex, utilities, and vacancy. 

Someone help me understand how these numbers work out for the buyer?