Duplex Analysis

[Rob Brown]

Hello everyone. There is a duplex that I would like to purchase however the owner will not go down on the price and insist its a money maker at the asking price of $115k. All utilities are not separate and I would have to pay for snow and lawn care.   

After running the numbers on the duplex I see a negative cash flow after utilities and property taxes. Please let me know if i'm not correct with my numbers. Is there something I'm missing? I don't know how the owner can justify the price. 

What would be a realice price for this property? 

Any feedback is greatly appreiated. 

Monthly Expenses

$583.14 Bank Loan Payment

$250.00 property Taxes

$197.00 average gas and electric

$90.00 water/trash

$60.00 Insurance

$80.00 Yard and Snow Removal

$48.00 vacancy

$128.00 capital Ex

Total 1436.16 operating expense

- 1300.00 Rent Income

cashflow $-147.14