1/2 Duplex Good Deal?

[Tom Scott]

Earlier I posted about a 28 unit deal I was looking at. Well, now it's time for the other side of the coin. I got a call from an investor looking to sell his town home. It sounds like I can probably get it for $32k or so. This is a blue collar area and the rents hover between $650 and $750 so I would be doing a bit better than the 2% rule. This is one of the large models in the development so I am pretty sure I can get $750 pretty easily. The previous owner claims that he had it rented at that level for a few years. I am going to see the unit next week, but the owner says it has a new kitchen and is in over all good shape. There is an association in place but it doesn't sound like they have any real power to levy assessments but I will of course check all that out before I move forward. Water and power should all be metered separately. 

So, it all sound like a good deal assuming the place is in good shape and it's rent ready. I'd be curious to hear your thought on the numbers and some possible pitfalls. 

I plan to finance it since it is so small, I can get a loan at my local credit union for 10 years at 4%. I assume I'll have to put 20% down. 

Tom