Would you buy this 9% cap house?

[Brian Zaug]

I found this deal off market through a guy that's tired of being a landlord.   These are the numbers...curious if this is considered a good deal in whatever market you are in.  I think it's a great deal but be honest and please share what type of deals are in your neck of the woods....

Purchase Price- 135K

Financing- 75% @ 97Kish at 6%- 576$ monthly'

Taxes 3700      Insurance 1400      

Duplex Grossing 2000$ monthly (IMO, room for rent increase based off the size of the units)

No work needed (updated apartments, 2 new furnaces, 2 new water heaters, 12 year old roof)

Utilities are separate

House is in an OK area, i'd say on the fringe of the ghetto

Cap rate around 9% most likely a little more...

It's in Poughkeepsie which is buzzing right now with investors.  Very hard to get a deal anywhere near 135K that doesn't require significant work especially off the mls....

Thanks for any insight

[Christopher Brainard]

When houses are on the fringe of the ghetto, you need to know if the ghetto is expanding or contracting. If its contracting, its a buy. If not, pass.

-Christopher