How to Analyze Duplex in Minneapolis

[Jackie Sladky]

We are in the market to buy and hold and plan to put down 25%.We have a seasonal real estate agent working with us, who is also a friend.  Rent in the areas we are interested in is about $1300 – $1550 for a 2 bds/1 ba.

We were thinking of a duplex priced at $440k, built in the early 1900s and has funny, damp smell in the basement.  We asked for info on the property: details, incomes, expenses and have not received it yet.  One unit is currently vacant.  Now within one week, they received two offers!I was thinking that even at $390k, it still would not be a good buy, so why are these properties moving so fast?  Are these buyers relying on future appreciation?  Or am I off base in thinking that the price is too high?