Rental Property Calculation

[Lars Bruinink]

I'm just getting started with real estate investments. I like the idea of a duplex (or more units), long term tenants.

I was wondering if our area just doesn't add up, or if I'm missing something.
I saw an older duplex for 480,000. The total monthly rent currently is total $3,400, market would be $3,900.

If I run the numbers, it looks like I shouldn't spend more than about $280,000, that seems a lot lower than what they're asking.