Duplex deal and future strategy

[Samantha Klein]

Hi BP. I am looking for some insight on this deal and my future plans. Any advice/wisdom is appreciated.

I looked at a duplex about 8 months ago that is a FSBO wanting 85K at that time, the owner is in his early 80s and I walked the property with the property manager. Both units are rented at $600 per month, 1 is 2BD/1 and the other is 3BD/1. The PM told me the current tenants are headaches, they are very messy and sometimes pay late. At the time I viewed it, I could not qualify for a mortgage but the PM said the owner would finance 90% of the purchase price for 5 years however the property needs at least 10-15k in updates. I offered him 70k and he relayed it to the owner, turns out the owner was in the middle of getting sued so he decided not to go for owner fiancing. It is still for sale and I now have cash to offer and was thinking about offering 60k all cash. The 3BD unit should rent for 700 making total rents 1300. Taxes are 3300 a year, 700 ins. I'm seeing around a 300 a month cashflow with a mortgage, sound like a decent deal? I ran the numbers and got a 17.5% COC, I am planning a BRRRR. I can get 2-3 more houses next year and was thinking of targeting duplexes that need work and doing a BRRRR with cash.