Would you buy this home?

[Noa Denova]

New investor under contract for my first rental property.

It's an older duplex in the ghetto, side by side 3 beds 1 bath each on a side street next to an elementary school.  Listing was for 30k, current seller bought it 3 years ago for 25k, I got it for 20k.  Currently fully rented for $1250/month, separate utilities, renters pay utilities.

It's in pretty rough shape at the moment, had a full inspection done.  Small amount of asbestos needs to be removed from basement, hot water tanks needs to be exhausted properly.  (leaking into basement currently)  Lots of water damage from upstairs bath plumbing leaking, both baths need full remodels, old roof, shody siding, old carpet, lots of other little small things.  Biggest issue is the water leaks at the moment.  One side is on public assistance for their rent.

I have about $13k left over to fix the place up....no more after that.  I am paying cash for the property, and taxes and insurance (DP3) add up to under 200/month.  The $20k I got was from a home equity loan at 5.75% on my personal place, $260/month there.

So I am cash flowing roughly $800/month from day one.....with repairs ahead of me....I figure with new baths and fresh paint and all little things done, hopefully no roof any time soon, I can raise the rents to 700 each, giving me more like $950/month cash flow.

Should I do it?  Would you?  Got a $1k down payment and closing in a few days.