Coming up with the value of a duplex

[Mark Williams]

Hello,

I understand the 1% rule says that if you pay $100,000 for a property, it should rent for $1,000 a month to give you a decent return.

I am wondering how to determine what I should pay for duplex. Let's say I can get $700 a month per unit in this duplex. Using the 1% rule, that means $700x2=$1,400 per month, times 100%, that means I can pay $140,000 for the duplex.

A duplex I am currently looking at is listed for $64,000. The house looks like it is in good shape, on a street with a few other duplexes.

Am I missing something? Is this a stupid great deal? If it is, why is it still on the MLS?