Pull the trigger on this Duplex?

[Casey Winder]

Hi everybody,

I have an opportunity to put my first deal together and it happens to be a duplex in my old hometown.  Its very tempting yet it doesn't meet the usual standards that I have been reading everywhere (1-2% rule, etc). 

Here are some numbers to give you a better picture: 1.) Owner financing with 0 money down and 4% interest.  I didn't bargain much on purchase price(166.000) specifically because of this. 2.) Taxes + Insurance + P.I = $1,000  3.) Both sides currently rent at $750.  

The property is located in a not so good neighborhood, its not a "ghetto" by any means but on a scale of 1-10, I'd give it 4. One side is currently vacant and the other side rented to a tenant via month-to-month agreement.  That current tenant is by far the filthiest in the community.  He has all sorts of junk in the front yard and the sight is an eye sore when compared to the majority duplexes that are around (Cul-de-sac).  

The carpet, paint in both sides have been updated and the currently rented side has an updated kitchen.  The landscaping is hideous but with a little TLC can look really nice.

So... is it wise to buy, make some updates and try and rent closer to 1% of purchase price, only a $75 dollar rent increase, or am I being emotional about the deal?  Being that it is my first one.

All thoughts and criticisms welcome and thanks for your help.

Casey