Duplex College town, kinda risky right now.....

[Luke M.]

Looking at purchasing a duplex in the town i live in.. 

$190,000

4 bedroom 1 bath up 

3 bedroom 1 bath down 

both have laundry in each unit

new roof 08

nice double garage

everything else seems up to date.. 

Very clean place

asking they pay closing costs (as of now)

taxes $1940

insurance $371 

tenants pay all utilities.

20% down fixed 30 yr 5%

Only down  is rented now, $750 assuming  they got someone in there to help pay the mortgage.. 

very close to campus, downstairs lease will renew in may and rent will increase to $900 top will rent for $1200.. most bedrooms in town are rented at 350-375.

So i will have the risk of filling the top, but i plan to rent it cheaper $1000 until may but list in Jan to get the rent I think  it deserves.. 300-350 a room.. 

So as of right now its renting at $750 with the tenants paying all utilities....

Hopefully within a month or so of closing I would have it all rented for $1750.. Renew in May and it would be rented for $2100..

Obviously not cash flowing now.. 

I do have some bank role to ride out the top not being rented  for a while.. 

Thoughts?

suggestions?

Luke