Duplex Deal - good?

[Steven Grabowski]

I'm pretty sure this is a good deal - my offer was accepted, but I still have an inspection that needs to pass.

Duplex (side by side, 1,600 sq ft each side)
Purchase Price: $19,000
20% down - $3,800
Mortgage on $15,200 @ 7% (commercial loan) $117.84
Taxes $2,300

Rents $1,000 ($500 a side)

Now, this alone is an unbelievable deal - but it needs work. New roof, paint inside and out, and new kitchens.

The question is, how much can I put into it to still make it a good deal?

My preliminary estimates for work are $22,000 for a total project price of 22k + 19k = $41,000
Mortgage on $37,200 at 7% will be: $288.41

50% rule states I have $500 - $288.41 = $211.59 profit

Cash on cash return for this is 66% right? ($2,532 profit a year / $3800 cash out of pocket...)

Good deal?