Paying a premium on a cash flowing CFD, is it OK?

[Kent Hranicka]

Hello, I appreciate any advice I can get on a CFD deal that I was offered on a Duplex. It is a turnkey place in a University Neighborhood, in fairly good condition with appliances about a decade old and a good structure, newer roof and windows. The owner is only asking 50K down for the property and it should cash flow a bit over a $1100 a month. However, his asking price is $445K, and after some market analysis and reverse cap rate analysis, I'm inclined to think it's worth around $390K/$400K.

I'm curious,  if anyone thinks this is a potentially bad deal off the bat?   My fear is that it will tie me up because I will not have enough equity to refi or get out of the deal for about 5 or 6 years assuming a little bit of appreciation.  

Any thoughts or pieces of advice are appreciated.