Cash on cash was approaching 10% before other investment drivers ( principal pay down, mortgage interest, tax depreciation,rental increases,etc.)Basically they can double or triple cash flow versus what CA is giving them.

Triple deckers are routinely selling in the $1.5M - $2.5M range anywhere in Boston, except Dorchester and Mattapan - and those are catching up.I would look in Plymouth and Bristol counties. 

However, please do yourself a favor and re-work your numbers, and then triple check them.The first concern I saw was your $3,500 in repairs.

Maybe a tri-pled or a quad.

From a cash flow perspective, a 3 Family (or Triple Decker as their known locally) would probably be more attractive, but an even higher purchase price.

Look into Triple Net Leases - like Walgreens or Applebees.

Double, triple up on them- Saying that you don't mind paying high interest because you'll deduct it is not smart either.

ANd check to make sure your state doesn't have rules about double or triple damages for landlords with anything related to security deposits --  for instance, in Maryland, they can sue for 3 times the contested amount.  

I do not think anyone has mentioned the fact that Cap Rates work much better with triple net commercial leases.Triple Net Leases basically shift the Taxes, Insurance, and most Cap Ex to the tenant.That completely changes the analysis process,Also in large commercial multiunit transactions, buyers will consider Alpha and Beta risks for tenants and the properties. 

I kept trying to find that home run deal but learned that it is way better hitting doubles and triples time and time again.