Seller is leasing new construction duplex under market value!?!?!

[Cody Campbell]

Ive been crunching numbers like crazy on a new construction 3/3 duplex with premium upgrades. The current market for a unit like this is 1500/month but the seller is leasing them at 1125/unit. Going back and forth about price and finally arrived at 250k but had to turn down the verbal lease agreement he made. This foiled the deal, am I crazy for thinking that its crazy he's leasing units at sub-market value yet asking a premium price for the duplex? My numbers still show cash flow, do I move forward with the property because of its close proximity to a major campus? Will the new construction make up for the 5500 loss in rent in the first year? Any advice would help.