Duplex Advice: gross rent at 1% of sell price

[Ashish Agrawal]

Hi - can i seek some advice if below is a good deal to pursue:

Duplex for $230K turnkey : rental details 2 units together gross rental $2K/month. Tax ~2.5K

I read some about 2% rule -- it does not seem to qualify that rule but then i have not found any that meets that rule. Is that possible only for section 8 houses that are below 50K? 

any advice on : if above house makes sense or not will be appreciated

Ashish

[Jason D.]

On the numbers you gave, it doesn't sound like it would cash flow unless you put a sizable down payment on it. Your mortgage will be in the $1200 range, $200 for taxes, $100 insurance, $200 maintenance and cap-ex (minimum), $100-200 vacancy reserve. After that there isn't much left over.