reasonable deal?

[Daniel Dawson]

I am looking for a little guidance. I am looking at a duplex that is currently rented out.  $900 per side. Built in 2006 in an up and coming area. The owner is asking $210,000. If I could get in around $200,000 I can expect around 1200.00 per month in operating costs. Leaving $350 per door. Sound like too much? I own two single family homes right now but am in the market for a duplex.  What do you think?  Thanks! 

[Rob L.]

@Daniel Dawson I'd pass on it. If you secure the property for 200k and pull in $900 per side their isn't enough cash flow. I know its a new building but after you factor in taxes, insurance, management, repairs, accounting/legal, electric  gas, water, trash services the cash flow isn't enough to make it worth it. 

I can tell you from experience,  its best to overcompensate for these things. Its always nice to make more money then expected then the other way around. 

I would run the buy and hold calculator and you will see, 

 http://www.biggerpockets.com/buy-and-hold-calculat...