Questions on a duplex

[Justin Knighten]

The deal:

I've found a "duplex" that is actually 2 SFH on 1 parcel. Asking price is $169,000. I think it would make sense at $140,000 and it's been listed for a while, so I'm thinking about making the offer.

The problem:

Due to being 2 homes on one lot, my mortgage broker says that traditional financing would be very difficult, if not impossible to find. I've talked to the loan officer at my bank, and he has said that he could do a 3 or 5 year ARM on a 20 year amortization. I'm not sure if there is enough room to go in, do work and significantly improve the value to do a full on BRRR with it, and with the traditional financing issue, it looks as if the Refi would be difficult.

With a 30 year loan, it would cash flow, with the 20, at least at first, it would be just above break-even. I have a HELOC that i have about $35,000 left on, and this would take about $28-30,000 of that for the down payment. While that was being paid back, cash flow would be at the break even point, after it was paid off, things would be great and it would make around $4-500/month.

I'd love to hear your thoughts on this.  

Here's the listing

https://www.zillow.com/homedetails/114-N-Central-St-Broadway-VA-22815/108061453_zpid/?