Is buying a duplex that cashflows $100 per door worth it?

[Angel Moreno]

Its going to be my first rental property and  seems like in this market all the multi family's go contingent within a week for the asking price or above in my area. I went to go look at a side by side duplex in Zion, Illinois and ran the numbers after all my expenses I should cash flow a little over $200. The asking price is $200k but the taxes are close to $8500 which seems like a lot. What do you guys think? 

[Chris Varsek]

Hey Angel - I'm an investor in Zion, and one of the top local realtors (I live in Beach Park, 3 minutes away).  Make sure you account for any tax jump, and the figure out what your doing with the water/garbage costs (as owner, those will be billed to you).  Also, what rents are you using.  Many local landlords are well below rent b/c they haven't tracked what's happening here. 

     Zion is still appreciating b/c of the push from the close WI market, and duplexes are really hard to find in NE Lake county (at least at reasonable valuations). 

    One missed issue will cause that cash flow to disappear.  However it may be a good opportunity to get in the game and ride inflation and appreciation.

- Varsek