Rental Purchase Help

[Greg Kell]

Looking for fresh eyes on a possible duplex purchase in Greencastle, PA. Each side is 3 bed 1 bath.

Original price of $85k.  I offered $55k. They countered at $80k. Rent coming in is $1150 a month for both sides. This is very low for this area. Rents should be at least $800 per side (Total= $1600)

Has knob and tube wiring. Electrical $10,500

Needs new windows= $5500

Needs new siding (has old asbestos siding)= $6000

Furnace seems good (serviced in 2016) but would estimate a future upgrade to heat pumps= $12000 for both sides.

Renters seem happy with house way it is. One has been there 7 years.

Property would cash flow $401 a month. After paying PITI, Cap Ex, Repairs, vacancy, taxes.

Didn't really want to go to $80k. Just getting some others perspective on this possible first rental purchase.