Deal, or No Deal? Help get this multi-family sold!

[Ben Meisel]

A broker friend of mine has a multi-family listing that has not moved yet and he's trying to see what can be done to make it more attractive as an investment.  I gave him some thoughts, but I'd love to hear what the real experts in the BP nation have to say.   

It's a remodeled triplex, in Auburn, WA*, listed for $390k.  Rents are currently $3150/month for all three units combined.  Annual costs are listed as $4380 (tax), $2200 (insurance), $2488 (w/g/s).  Cap rate at list price would be ~7.4%.  

Assuming 25% down, no fix up costs, reserves of 16%, and a property management estimate of 10%, an investor would only cash flow about $95/month.  Given the ~$100k cash investment, the cash on cash return seems pretty poor.  

How else can this deal be analyzed, or what could be done to make this more attractive to an investor?  I appreciate any thoughts or feedback!

*Auburn is South of Seattle, Bellevue & Renton, and just East of Tacoma.

[Brent Coombs]

The Broker likely knows the answer: get the Seller to become more motivated - to accept less!