10% COC ROI buy & hold - to buy, or not?

[Gabriel H.]

Hello Bigger Pockets,

I'm about to make an offer on what would potentially be my 2nd buy & hold duplex.  The numbers don't seem to be a home run, so I'm on the fence.  Should I pull the trigger and buy it, or wait for a better deal down the road?

This property is in the same neighborhood & school district as the last duplex I purchased.  It's less than a mile away and is a very similar property. I'm pretty confident about my analysis, rent rates and expenses. The neighborhood is working class, probably a B/B+ neighborhood.  Low crime & great schools.  There are several blocks of duplexes, but the neighborhood is mostly single family homes. The units rent out very quickly.

The cash on cash ROI on this new property comes out to be a little over 10%. The previous property was a little over 15%. Fully leased, cashflow would be roughly $425/mo after PITI and soft expenses.

Another thing that gives me some hesitation is that it's not a symmetrical duplex. One side is a 3/2, and the other is a 2/2. This isn't standard for the neighborhood - most duplexes are almost identical on each side. The 3/2 almost covers all of PITI, but the 2/2 is about $350/mo short. So if the 3/2 isn't rented, it will lose money. The 3/2 side covers all PITI.

The 2/2 side is currently occupied by a long term, 5 year, renter.  The 3/2 is vacant and needs very little work to be ready for renting.

All input is appreciated!

Gabe