Is this multifamily a pig?

[James Free]

Ben Leybovich has written plenty about the folly of investing in pigs (https://www.biggerpockets.com/renewsblog/2015/03/0...).

I am wondering if the deal below qualifies. It certainly does on purchase price, and perhaps neighborhood, but the multifamily aspect makes the prospective rent so absurd that it might be a good deal anyway.

Purchase price: $40,000

Taxes: $600/year

Units: Three 2/1 units

Market rent: $550/unit

Even with a generous capex budget, you can find a lot of room for cash flow when you're getting 4% rent/value ratio. Suppose repair/capex is 40% of rent? Fine, throw in 10% for vacancy and 20% for taxes/insurance/water and I'm STILL cash flowing over 10% on my $40,000 investment.

I understand that the key to this is actually getting tenants at $550/month, but if the market seems to support that, can a pig not be a pig?