Fully Occupied Duplex - Good Deal or Not?

[Craig Shute]

Fully rented upstairs/downstairs duplex in a village setting about 45 min from a mid-sized city. Each unit rents at $600/mo for a total of $1200 gross income monthly. Utilities are separately metered and paid by tenants

Expenses:

Taxes $2100

Water $1200

Insurance, I don't know

Repairs, 10%, 1440

Reserves, 5%, 720

Vacancy, 1200

Net income of $7032

Both tenants have dogs. Exterior should be scraped and painted or vinyl sided, Some plaster repair needed in both apts. Fixtures drain slowly. Bathroom in one need some subfloor replaced, vinyl put down, and wallboard put up or plaster work done. Asking price $42,900, I informally offered $35,000. This is an hour away from my house. I think the numbers seem pretty good, and when each lease comes up, I will raise the rent to $650, and either they will pay it, which is great, or they will move, which is great, and I can do the necessary repairs to their unit. This would be my first deal and I am hoping for some advice from the pros. Thanks