Investing in my first rental property Pt. 2 House Hacking/Duplex

[Steven Griff]

Hello, everyone! I'm looking to leap from the nest (my parent's house), and I've been on the hunt for a duplex for my first home purchase. Unfortunately in my area, duplexes seem to be a dime a dozen (did I use that expression right?). Especially during these times, new properties are very infrequent and I've become fixated on this one particular property, a 1 bed 1 bath/unit duplex. 

I know this isn't ideal as I've been told most people don't really want to live in a 1 bed 1 bath (I'm 22 and single so I don't mind!). However, I feel like this may be a solid "starter home". Something that's easy to manage, and almost comparable to renting out a room in a single family but with more privacy. Not to mention, it's sub $100,000, which means I can absolutely afford the monthly expenses, even without a tenant. I made a few offers on the property, and eventually wiggled up to offering full price, however, my last offer I asked the seller to cover 5% closing costs (CC would be roughly $5,500 on this property). I was stiff-armed, and the seller refuses to come down from his asking price and his 2% CCA/1% Repair cap. 

Since my first offer, the seller has rented out both units with a one-year and 6-month lease and is supposedly cash flowing. Inheriting tenants during the COVID times seems scary due to courts being closed, but I have more than enough funds to cover monthly expenses worst case scenario + it would be great to purchase a property that's cash flowing before I move in. All that being said, am I crazy to think it might be worth offering what the seller wants and taking a gamble on the tenants? I intend to buy + hold the property, using this as a stepping stone. In your opinion, is a 1BD/1BA duplex a generally poor investment? I don't want to let this deal slip away, but I'm not being pushed out and can afford to wait for a better deal to come along if needbe.

I know it's hard to give super solid advice because you all are not familiar with the area. However, any insight is greatly appreciated.

Extra Info:

I plan on putting 20% down.

The neighborhood is fair, not great, but not bad. (I'd feel comfortable living there + some newly constructed homes nearby)

The property appears to just need minor cosmetic repairs. 

PRICE: $95,000

Current Leases: 6-month $600/month, 1-year $730/month + Owner paid Electric