First Duplex Deal in Atlanta Area...HELP!

[Rob Wilcox]

Hello BP,

This is my first post to BP and very excited to join the community!

My partner and I are funded, open-minded and excited to get started. This is our first deal and we are trying to analyze the property and would love some feedback. Details below:

Duplex in solid area of Atlanta that is transitioning well. mostly SFHs with a few houses in the neighborhood that have flipped and are for sale around $150k to $200k. Most of the houses are well kept SFH 4/2, about 1,500 square feet that have zestimates of $70-90k.

Purchase Price: $134,000

Due Diligence: 7 days (or 10 if we go cash)

Flood Zone: X

Side A (section 8) - Currently occupied ($800 / mo), 6 months into the lease, but have been in the property for 2.5 years.

Side B (section 8) - Signed 12 month lease about to move in this week ($800 / mo).

GRM ($1,600 x 12 = $19,200, $136,000 / $19,200): 7.1

Financing: ($56k cash, $80k HELOC at 3% = $338 / mo)

50% Rule: $800 - $338 (debt service) = Cash Flow of $462

Appraisals: Recently two...two weeks ago $126k, six weeks ago $136k.

Other Details: The property was under contract twice, but supposedly fell through due to the buyers lack of funding (this is probably we don't have).

The numbers seem to work, we are somewhat concerned with the Flood zone, short due diligence period, section 8 and purchase price due to the other houses in the area, but the houses are definitely well kept and the area is definitely transitioning. =

Any help or thoughts are welcome...we have the contract to sign and we are paralyzed.