First Deal Review Please

[Matt Spitsbergen]

Hey everyone.  I have a deal that I am looking at, and I would like all honest opinions...good and bad.  This would be my first venture into real estate investing.  My focus has been on purchasing multi-family as a buy and hold investor.  Here is the deal.

2BR/1B Duplex for $49,900 currently renting both sides at $500/each for a total of $1,000/month.  These are new 1 year leases that have been signed.  Seller is offering owner financing.  

I like that the owner financing is available which would allow me to get in without having to go apply for a mortgage.  I'm currently checking into the terms for the owner financing.  It also passes the 2% rule which I like.  I also like that it currently has tenants so I would not have to prepare the units to be rented and would immediately start to cash flow.  

Location is good based on proximity to the Navy base in town, but the neighborhood is suspect with a mixture of decent houses and run down houses.  I would be buying for the cash flow, and not resell value, but I also don't want to be in a declining neighborhood either.  It sits on a nice corner lot with woods across the street and to the side and back of the property which I like.  The property to the right however is abandoned and boarded up.  

Please let me know your thoughts on this!

thanks,

Matt