Triplex - A go?

[Chris Pasternak]

I have a verbal agreement from seller he will accept this offer: 49.9k, seller remediates mold (not sure how bad it is), buyer/seller split cost of boro's inspection. I follow up with my own inspection.

Here are the numbers for this property. All comments welcome.

Triplex, 2 units rented. According to the MLS, rents are (how accurate are these btw?): 550, 700, 525 . However, I ran my numbers as 550 for each unit. House was built in 1900. It is not a war zone, but it will not get the most desirable tenants either. Maybe C tenants? I would, in fact live their myself if I didn't think I could purchase another one soon after this one. Which leads me contemplating purchasing this one cash and using my VA loan for a SFR in a high rent area where I can get roommates. Thoughts on that? Should I take it one at a time and use a conventional loan on this one as the offer states? Do cash? How easy is it to carry 2 loans? To the numbers...

Purchase price: 49.9k

GSI: 19,800

Vacancy (16%): 3,168 (where can I find an accurate percentage for this?)

EGI: 16,632

Operating Expenses

Taxes: 1,562

Insurance: 650

Accounting/Legal: 300

Repairs/Maintenance (14%): 2,772 (where can I find an accurate percentage for this?)

Management: 2,800 (will likely use because cashflow allows me to)

Annual debt service: 3,156.48

NOI: 8448.00

Cash flow before taxes: 5291.52

Cashflow: 440.96

Cap rate: 17%

COC ROI: 24% (12,250 down payment; 4,000 in closing, 5,000 in initial repairs)

RE ROI: 23%

Things of note: There are only 2 furnaces, third unit uses electric heating floor heating. Only 2 HWT, not sure which unit is siphoning hot water from which yet. This is a legal 3-unit though. Obviously the mold issue (maybe, it's based off of what myself and the realtor are lead to believe is mold).

Thoughts?

Thanks!