First Cleveland Investment: Triplex showing 45% COC return. Am I missing anything?

[Golan Corshidi]

Hey all,

I used all the advice and wisdom from these channels and decided to do my first deal out of state. I would love your feedback on how you all think I did. 

I live in San Francisco and bought a triplex in Cleveland, Ohio in a Class C neighborhood. Based on my numbers, it shows a 45% cash-on-cash return. That seems way too high. Am I missing something?  Maybe I need to budget more for tenant default, vacancy, maintenance, or something else. 

Background:

I had never been to Cleveland. I did extensive research on the market and based on purchase prices and rents in the area it seemed like a good investment. I bought an almost rent-ready triplex sight unseen in September and got it fully rented within 60 days of closing. 

Numbers:

Purchase Price: $140,000

Cash Invested: $42,000

Income:

Unit 1: $1075 + utilities. Unit 2: $950 + utilities. Unit 3: $800 + utilities 

Total: $2,825

Expenses:

PITI: $980

General Maintenance: $50/month

Maintenance Reserve: $143/month 

Other Fees (admin stuff like LLC, registration fees, etc): $70/month

Total:  $1,243.

Monthly Cash Flow: $1,582

Cap Rate: 13.5%

Cash on Cash Return: 45%

I appreciate any feedback or advice on this deal as I am just starting.