Duplex in B Neighborhood - First Property

[Billy Holt]

Hey BP, 

Looking for advice on getting my first property in Roseville, Michigan. It's a side by side ranch duplex near Gratiot listed at $110k. Rents in the area are pretty much all at 700/unit. It's on a slab, no basement, new roof and new windows. Currently rented to long term tenants of 4 and 8 years (both smoke and are pretty messy) paying 700 and 750/mn. Based on my numbers, it should cash flow pretty well (a few hundred)

My real estate agent has some hesitations as he thinks rents will pretty much be capped at 700, it's not in the most desirable area (more of a rental area), and my tenants won't be A+ tenants for that price point. While I would love a place in a more desirable area, the numbers just don't work for places like Ferndale, Royal Oak, Livonia, and the like. 

Pros: low maintenance, low price tag, positive cashflow

Cons: rents capped at 700/mn, not going to bring in rock star tenants, not the most desirable area

Thanks for the help!