Multi family analysis

[Daniel Klebba]

All, I found a two unit multi family home that I'm interested in. Good area, great school system and they are asking $139,000. Total monthly rent is $1475 and both units are leased. Total revenue generated this past year was $17,700, net operating income was $8,237. Following the 50% rule, the $8,850 could be expected for expenses, so it looks based on the NOI they were slightly higher this past year. My problem is the 2% rule doesn't work on this property. I'd have to get almost a $1,300 more in rent per month if I bought at full ask. Clearly I wouldn't do that, but even at $125,000 if still need to get about $1,000 more. Looking at the tax assessment, the latest value was $60,800. 1.) Do you think I should further consider this property being that the rules have not been met? 2.) I'm considering making an offer at twice the tax assessment as a starting point. The Zestimate on this house is $170k. Thoughts?