North Minneapolis concerns - Duplex purchase

[Parker D.]

Hello everyone!

I am currently looking at a duplex in the Jordan neighborhood but I have some reservations...

Pros

- Property is in good condition and needs little work

- Great cash flow - based on my calculations I believe it would cash flow 700-900 for a <200k duplex. This would be 21-24% COC Year 1 with 5% vacancy and 5% capex.

Cons

- Neighborhood? I don't own anything in north Minneapolis and am concerned about the area given the state of Minneapolis

- Buying into a decline? I see there is a discussions on the state of rentals Minneapolis and see a lot of people that are holding off on buying. 

Are my concerns warranted? Does anyone own property in this area that would be willing to share their thoughts? 

Thanks!