Need help on Duplex purchase

[Rob Smith]

Looking at purchasing a 1996 duplex in a good neighborhood. The person selling the duplex tells me it has a 10% cap rate which I can't confirm. I come up with a 6.9 cap rate. Is this a good buy??  If I go by the 50% rule it doesn't seem to be a good buy but seeing as the tenants are  paying for all utilities I would thing the 50% rule may not apply.

The duplex has the original furnaces with central air, roof and appliances. All seem to be in good shape.  3 bedrooms with 2 baths in each unit. The duplex has a daylight basement in which 1 bedroom and 1 bath are located with an additional family room which can be used as a 4th bedroom.  Utility and washer and dryer also located in daylight basement.

183000.00 price

950. a month per unit

22,800 year income.

Taxes $4700

Insurance $1400

Cutting Grass $500

Misc. $1000.  Estimate.

Tenants pay for water, electric and gas.

Loan for full price 30 years at 4.125%..  $887 a month P&I

Thanks for your input.

Rob