Am I missing something or is this a bad deal?

[Hyuma Leland]

Hi all, a real estate broker-agent and loan originator I have been working with have sent me a deal that they insist is a great deal. I have run the numbers myself and don't see much upside on this as a long term hold unless the price was significantly lower. Maybe I'm missing something or are they mistaken? Los Angeles suburb triplex. Seller is a fix and flipper, looks like he picked it up for ~305,000 last year. Two of the units have been rehabbed and are vacant. The third is rented at 750/mo (rent controlled) but could be delivered vacant. Based on rent comps I estimate rents of 1350/mo, though the seller is touting 1500/mo Price $550000 Repair: $15000 ARV: at market Monthly gross: 4050 I'm really struggling to see what I'm missing here. The agent is telling me the property is priced at market (which I agree) but maybe the market and comps are all overpriced? Is this a fundamental disconnect between estimating value based on comps vs. CAP rate? If so, how do I reconcile this? Thanks BP community!