Looking for opinions on duplex I'm considering

[Alan K Auman]

I'll cut to the chase:

3b/2ba each unit (built as a duplex so mirror images of each other)

Listed for 80k

Purchase price- 70k (seller paid closing costs) with 20%down ($14k)

Rent- 650/unit

PITI- approx $500/month

Neighborhood- C+ to B (about a block and half from a very nice park but with some rundown houses on the block. Property is also less than a half mile away from the biggest hospital in the area and about 3 miles from ISU campus.

Other positives- both units are metered separately on all utilities so tenants can pay their own utilities and save me that headache of trying to figure out who pays what. Property has been updated with vinyl siding, gutters, and all windows are updated as well. Also both units are in fairly good shape with long term tenants in each unit who seem to care for the units. They are paying well under market rate of 650/month so that's a discussion that will need to be had.

Hangups about the deal:

*knob and tube wiring throughout (though seller has agreed to update at a cost of $6500 as a condition of sale so I guess that's actually a positive. Seller has also agreed to a 1yr home warranty and termite treatment as evidence of termites were found during inspection)

*roof is old, will need complete tear off when it's time to replace. I think it still has some years left in it but I would expect to be replacing it within 10yrs. Will be very costly when it's time to replace.

*Plumbing is old. Not much newer plumbing to speak of although my better halfs family is a family of plumbers so that helps out with that concern.

*both front porches are sagging towards each other so some mudjacking could be a future concern though I think I can stabilize the sinking by fitting the porches with gutters that they currently (and have always) lacked.

Overall I'm pretty confident that the deal is good but I could use some outside opinions just as food for thought. Also something I didn't mention is there is a generous sized fenced in back yard with a garage. The garage is in terrible shape though and should probably be torn down at some point though as of now it works for storage purposes.

Thoughts are very welcome!