Look at your local zoning and whether it would permit 3 units on 1 lot. 

There is more to South Philadelphia then just Point Breeze and each neighborhood has it good and bads to it depending on what you are trying to accomplish.Would highly suggest attending some RCO or CDC neighborhood events as well as there zoning meetings to get a grasp of where the development is going and does it fit your wheel house.

$140k with $1485 in rent seems pretty solid to me as long as its not in a war zone.

You have red dots for houses for sale.

Where I live it is exceedingly rare to see properties below $150k that aren't in "war zones" (or at least the closest thing we have).We have the cash but haven't bought a BRRRR yet and want to know if our math looks correct as far as buying the following bank owned property.  

wouldnt there be a zoning issue?

Possible deed restrictions or zoning issues may prohibit you from doing that.  

The structure is an old house and the zoning in the area allows for a business or residential. 

Check with the FEMA flood maps to see what zone it is and if there is much risk there

The home will be worth less due to the fact that the primary buyer will be a investor, like yourself, as opposed to a home buyer" is an unreasonable statement - - even a war-zone property has value.