2 Units of Duplex Deal Analysis in NorCal

[BeBe Cheng]

Hey guys, I'm thinking to cut a deal on 2 duplex next to each other . Willing to listen to see whether the deal is a deal.

Here are the details:

Duplex #1 Asking Price: $250,000
Units: 2 bed / 2 bath,

rent for $875, $950. Long term tenants. Market rent is $1200 each unit

Built 1972
Tenants pay utilities---Did not get verified yet

Management: 7%

Insurance: $80
Taxes: $234

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Duplex #2 Asking Price: $300,000

Units: 1, 2 bed / 2 bath, 1, 3 bed / 2 bath

Vacant: Market rent is $1200, $1300 each unit

Built 1972
Tenants pay utilities---Did not get verified yet

Management: 7%

Insurance: $80
Taxes: $275

Good location. Easy to rent. Going to pay for. It is not going to meet the 1% rule. Where do my numbers need to be. Thank you for any advises.