Is Sacramento duplex market drying out?

[Lenny B.]

I wanted to pick the brains of some of the gurus on this forum and help me analyse the Sacramento duplex market. I am looking at the duplex in a good area of Rancho Cordoba around $280K. well maintained, roomy 2 bedrooms. Rents are around $950 for each side (probably under market) with tenants paying electricity. Looking at the bills that landlord pays, I am seeing these monthly expenses:

Gardener: $65/mo
Water: all over the place, between $85 and $250 per month, mostly around $140
Garbage: $140/mo
Mortgage+tax+insurance: $1375/mo
This leaves about $300/mo in positive cash flow. On the $70K down payment, doesn't look like much, especially if you factor in repairs and vacancy rate. 

Thoughts? 

[Derek Jones]

I wouldn't say it's drying out but priced wrong. Most I've seen where the owner claims great investment with X cap rate they are basing it off their purchase price years ago and aren't considering current purchase price.  I wouldn't pay asking for any duplex listed in Rancho.  Time to start negotiating that purchase price down or have the current owner renew leases with higher rent.