Advice on possible deal

[Marcelo Ricarte]

Hello BP Family, 

My wife and I are looking to buy a duplex using an FHA in South FL. Property seems to have lots of potential but we're not very sure. Numbers, to be honest with you, don't really seem to be working out (perhaps we're missing something?). We thought of reaching out to you guys maybe you have a different perspective and/or can give us an advice or point of view?

Thanks in advance before anything!

Its a 4/2 and 3/2 duplex asking price $349,900. just reduced 20k, 60 days in the market

Its a B or B+ area, schools are pretty good (considering schools in South FL), rents are way undervalued (a 4/2 can be easy rented for $2200 and a 3/2 around $1800), right now they're $1450 and $1350 mo to mo.

We thought that we can be hacking it but we have to lock one side's rent with a one year lease so we can qualify with the income, so according to our calculations we'd have to come up with around $1600/mo to cover operating costs for that first year before we can raise it to $2200.

Additional data:

My wife is a realtor so we'll try to factor in her commision on the purchase.

To us, the property is underpriced based on past sales comps (estimated price $420k).

We'll offer $340k and based on pictures (we have an appointment this saturday to go see it), it doesn't need much updating, probably $10k.

Anyways, I know is long and I don't mean to put you to work but any advice will be very very appreciated.

Thanks again.

Marcelo and Giselle.