duplex with section 8 tenants (staying)

[George P.]

i am going out of my comfort zone here, but here are the numbers (they dont lie).

Brick duplex on a crawl space (never seen one before. seen either vinyl or wood)

2 section 8 tenants (7 yrs, 5 yrs)

asking price $75k (assessed value at $29k)

current rent - $1,400/month = gross - $16,800

insurance (guess) - $100/month (could be more) = $1,200

taxes - current year - $2,500 (most have been $4k)

will have to use PM since it's 30 mins away - $150 per month

Repairs - $100 month (average)

no immediate repairs, they seem to be happy living in clutter and nicotine discolored walls

according to @Joel Owens formula:

gross rent - $16,800
NOI = 16,800*.4 = $6,720
CAP = $6820/75k (asking) = 8.96

it's a C area, but not warzone. that whole town is that way. it reminds me of flint (great at one time), but without the crime.

Basic formula:15 yr ammortization, 5.25% apr = ~$466,

expense of P&I + PM+repairs+insurance+taxes (current) = 466+150+100+100+208 = $1,024

Rent = $1400

Profit = $376 = $188 per door