I found another duplex I want to buy, but WTF?!

[Brian Zitzow]

So I found a duplex in a desirable neighborhood in my area and I want to run the numbers by you guys.

Asking Price: 350k
Gross Rent: 2000

I can do owner occupied financing with 3.5% downpayment and I'm assuming a 4% interest rate on a 30 year fixed. Property taxes in California are 1% of assessed value, and this property was previously assessed at 347k.

If I offer 200k on it, it's WAY negative. I can offer 95k on the property to get it to cash flow $100 per unit net income. Are my numbers WAY off or WTF? Who the hell is going to buy this thing???????????????

Can I get a sanity check on my expenses?

At 95k it pencils out:

At 200k (150k below asking price) I'm -$295.94 a month NET cash flow:

I am using general estimates for my CAP EX costs. I realize this could be off, but even if I didn't account for CAP EX at all I couldn't make it positive cash flow at 200k purchase price