In contract for $85k Duplex in Highland Park Richmond... what's the catch?

[Matthew Maggy]

My girlfriend and I put an offer in for a duplex in Highland Park Richmond for $10k below asking ($95k to 85k), seller pay closing. 2009 the roof was redone, all new plumbing, electrical, mechanical, the permits are all completed and approved. Vinyl siding. It was on and off the market since 2013 and was originally listed at $107k. Nobody has even made an offer on it. 

Analyses says that we would cash flow $325/month with both units rented for $550. 

It's got an awkward layout of both units, but is in pretty good shape for the age of the home.

What am I missing? It gets renters. I didn't see any issues structurally or anything. Of course, I haven't had inspection yet.  

What am I missing? Is it the neighborhood, the layout of the units?

[Jon Deavers]

Hi @Matthew Maggy

I know exactly which duplex you're talking about. I represented another BP member last year to purchase the one right across the street. You're spot on, in my opinion, regarding the numbers you have projected. The awkward layouts are what is holding that property up, also in my opinion. They both lack a real living room and that would be tough to get top of market 2 bed rents for, but $550 is pretty standard for 1 bed units in that area so if you market to that tenant base you shouldn't have a problem renting out. The building is in above average condition for the area, again my opinion. Not a bad buy at $85k.