Should I do this deal?

[Rob Bianco]

Right now I'm going through the 1031 exchange process and I'm having a tough time finding a replacement property within the 45 days. I'm an out-of-state investor from NY so I rely on friends and realtors to bring me deals. 

Recently, a guy I know said he was moving and selling his duplex for $200k in Houston, Texas. I don't own any properties in Texas but after looking at the details I'm seriously considering giving it a go.

Asking price is $200k but I offered $185k cash. Each unit rents for $1,000/month and while the home is a bit older (built in 1983) it's in a B-Grade suburban neighborhood with high demand. It's questionable how much more rent I can get with light upgrades for the area but I'd be aiming for $200 more per month on an $8k budget per unit.

Expenses include property tax is $380/month. Insurance $140/month. 10% of rent to a property manager.

[Rob Bianco]

@Ayo O. Thanks for your input. I was going to go cash to get the deal and refinance afterward.