Duplex Purchase - Wanting Feedback

[Kurt Bouma]

Just looking for some feedback on a deal I offered on over the weekend. 

I've been in search of really any deal I could find that would cashflow a minimum of $350/mo out of that gate after ALL expenses (management fee, maintenance, insurance, lawn/snow, P&I). 

Without having time to find off market deals, I didn't really expect to find any such thing on the MLS. One popped up this weekend but didn't show any pictures (which is usually a sign). But, I figured maybe I'd be the rush if I took a look before they completed the listing. So I scheduled a showing the next morning.

The place looked fine for a rental duplex. It is a 1986 build and doesn't seem to be updated since then. Structurally, everything looks good. I estimate the roof to be halfway through useful life. A/C and furnaces are original, so they'll need to be replaced at some point. 

One side is 2/1 the other is 3/1. Side one is currently rented for $800, side two is currently at $1000.

While I was there, two other parties showed up to see the place so I figured (like many listings these days) they'd get a full price offer from someone. 

They were asking $161k and I offered $150k. They accepted, no counter.

I'll be putting 20% down and getting conventional financing for the rest provided the inspections don't turn anything up.

Side 2 has egress window in basement ready for 3rd bedroom to be framed and finished. Both basements are plumbed for bathrooms.

Just looking for a quick, "Hey nice deal!" Or (more importantly), "Are you kidding! Why would you do that with your money!" (with some justification that I haven't thought of.)

Thanks for taking the time.