I understand the risk it comes with if I have vacancies, but I do have a couples of months of mortgage saved to use in case I get stiffed.

Challenges and Opportunities Unique to IndianapolisSeasonality: Tenant interest tends to slow in winter, so try to avoid vacancies during those months.Diverse Neighborhoods: Indianapolis has varied sub-markets.

. $150 cash flow on any rental especially a triplex is dangerzone imo. 1 month of vacancy of 1 unit could destroy a years worth of financial gains.  

I applaud you for putting it out there but 1) maintenance/cap ex is far too low for a duplex 2) no PM. 3) vacancy at 1% will be challenging if achieving near market rent.

With my own portfolio I generally underwrite with 10% for repairs, 10% for cap ex, 5 percent for vacancy. 

I have referred a loan out of state based on NOI, cap rate at purchase, room for increase income and purchase price vs market value.Maybe I didn’t articulate the intent of the post as clearly as I hopedFor anyone who has bought multi family out of state, “what are gives you the warm and fuzzies about a deal”:Obviously not cap rate, but maybe vacancy rate,  Cash on Cash ,GRM, IRR, Unlevered free cash flow, Cities over 250k?

Vacancy and maintenance factors should be higher than for Class A or B.

We have had it as a rental for 5 years now and have had only 15 days of vacancy. 

Did you under or over estimate vacancies?

I understand the hesitancy to lease to students but vacancy is so low, that if you can handle a few headaches, it's worth it.