Four Duplexes Deal?

[John Warren]

So yesterday I viewed some very interesting properties. They were four duplexes with identical flour plans in an A area. They have a lot going for them, but some pretty serious risks to. I am curious what the BP community will think of these numbers.

List Prices: $159,900

Each unit has 2 beds and 1.5 baths

Rents: $1150-1200 per side ($2400 per unit)

Taxes: $12,700 per year (ouch!)

Bad News: These are located in a flood plain, and have flooded before. I would need to hold flood insurance on them.

The Good: A comp recently sold right next door and taxes are down to $6,000 per year.