Help Analyzing a Triplex in Elkins Park, PA

[Oscar Beteta]

Hello BP!

I could use your collective wisdom as I try to analyze one of my first few property.  I'm looking to invest in a small multifamily property (2-4 units) with the plan to househack for a while.  I would like to invest in one of the suburbs surrounding Philadelphia - Bucks County, Montgomery County, and Delaware County.

I found a triplex through a wholesaler that I met at a REIA meeting (Diversified Investors Group). I've started to look at the numbers.

I'm struggling right now to compare my numbers against the 50% rule.  Based on my estimation of costs, I calculate that my total costs excluding the mortgage payment is about 66% of the total rental income.  My understanding was that the 50% rule was supposed to be conservative.  However, in this case it significantly underestimates the non-mortgage costs.  See my numbers in the attached image below.

I need help to understand if I'm making any mistakes or overestimating some costs.

My own conclusions are that the high property taxes of $9180/year are skewing the numbers.  It's also possible that I may be overestimating the maintenance, vacancy, and misc. costs.  In order to get the non-mortgage costs to around 50%, I would need to shave off about $500 somewhere!  Is this just a really bad deal or am I missing something?!

The property is located in Elkins Park, PA in a really nice street with a creek in the back. Based on my search of the FEMA website, the property doesn't exactly sit into the flood zone but pretty close to it. For the moment, I'm assuming that I would pay for flood insurance. Also, the property has two 2-bed units and one 1-bed unit. I don't feel super confident about it but I think my estimate of the rental income is in the right ballpark.

Any feedback would be much appreciated!  Let me know if you guys have any clarifying questions for me.

Thanks in advance for your time!

-Oscar