Duplex. Cheap Price. Rehabbed. Why for sale so long?

[Michael Jimerson]

I first have to say I am newbie, but this site is giving me the confidence and belief that I can do this!!

Ok, the duplex has had some rehab. Both Units have NEW Paint, NEW Carpet , NEW Kitchen Flooring, and NEW Kitchen Counters. From the pics, both units look move in ready. Where it is located, it would seem that their would be a definite need for housing. The property was last purchased on 10/15 for $16,500, and then they listed the property for $64,900 in 12/15.  I figure they rehabbed the property a little, and are trying to flip for maximum profit. (Who can blame them). So on 1/16 they dropped the price to its current asking price. I have searched a few rental websites for the area, and it would seem places rent for about $750 - $1000 for a 2 bdrm 1 bath. Even if we go on the low end, say $750 rent per unit, that would be $1500 total for both units rented. If you paid cash, or financed this property, wouldn't you still be in the positive cash flow?

The duplex has been on the market for over 200 days, should I be wary? 

I could not find any comps in the area that match for duplex, only single family homes.

Am I on the right page? Am I asking the right questions? 

Thanks

Michael

[Chris Mason]

That could very well mean that no one can appraise it, meaning that no one can get financing on it, meaning it'll have to be an all-cash deal, which could be why it sat for so long.

I've been told that some commercial lenders will allow the use of the income approach to get an opinion of value, which could be a viable solution to you if you don't have the cash.