First Duplex Deal, Help needed

[Devin Mills]

So after months of looking I finally offered and had a contract accepted on my first duplex.  It is in the Columbus, Ohio area in a B quiet neighborhood with duplexes (don't have much info on comps because people have held these since the neighborhood was built in 1980) and nice single families in the 250K range throughout the neighborhood.  I am 24 years old and my fiancé and i were looking for a duplex to owner occupy and live for the next 10 years.  This meets her requirements of being a good enough neighborhood she feels comfortable in and my goal of house hacking using a buy and hold strategy. 

So, this property was listed at 190K.  The auditor's website says current seller purchased the property 4 months ago for $145K.  I got the seller down to 186K sight unseen and he accepted my offer despite supposedly having 4 other offers because i put 20% down and could close by the end of May.  Fast forward 2 weeks and I just had my inspection completed.  Repairs for both units are roughly 20K total including 1 new HVAC unit, rotted out floor below sliding glass door, new flooring thorughout.  I have asked the seller for a 6K credit to help with repairs. The current seller is an agent and he got a great deal when he bought the place in an off market deal 4 months ago.  However he has not lifted a finger to fix anything and will profit 30K+ for doing nothing.  I talked with the current tenants and not much has been done with repairs over the years.  Not my concern that he got a great deal but I want to make sure I am getting a good enough deal and not getting ripped off.

1 side is rented month to month at $730 (tenants have been there 8 years, but I will need to get them out to occupy myself).  The other side is rented for $700 on a year long lease thru November.  They have rented the place for 18 years and rent has stayed the same.  Needless to say I will likely need to kick them out and need the rent upped to at least 900 or 1000 month for the next lease which I believe i will be able to get after repairs.

So, would you take this deal? 186K contract price-6K in credits from seller+20K in repairs takes it up to about 200K total.  I want this deal to work but don't want to overpay, what do i need to increase rents to to make this deal work financially?

[Brandon Sturgill]

@Devin Mills let me know if you want to run some comps or plug in some numbers on a financial analysis...no obligations...are you working with an agent? Very surprised you don't have a wealth of data to analyze...I am firm on data driven decision making...PM me or get a hold of me from my signature line and we'll analyze this thing!