How Does This Make Sense?

[Joseph Corlett]

Hello:

I'm new here, but the introduction page won't let me post.

There is a ratty duplex down the street for sale, the Realtor says the bank will probably get 67K for it. I think it needs 50K per unit. How does $16,000.00 per year rent (including a 7% vacancy rate) make a sensible return on $167K?