Buy and hold a depreciating duplex in a college town?

[Aaron Moreno]

I am looking at a purchasing a duplex in a college town. According to the numbers I have run this duplex hits the 1% rule and even cash flows roughly $100 - $300 for both sides depending on what I can purchase the duplex for. According to my agent the property has been depreciating over the last few years. In 2014, the property was purchased at $314,000 and is now being sold for $280,000. Despite the depreciation I am still interested in the property for a few reasons

1) it would still cash flow. Yes I’m not setting the world on fire but there’s still cash coming in

2) the duplex is only 3 blocks away from the campus (15 minute walk)

3) the current state of the duplex has great potential for a renovation with a chance to add some equity over time

Am I crazy to still be interested in this property with the potential to purchase it, renovate it and hold on to it for some time? Or should I be more cautious with the depreciation history?