Help me evaluate this Duplex

[Kirk B]

Duplex 2-2Bdrm appt $450/mo each. This is a little below market, but the condition of the apartments is below market. Circa 1900.

Exterior
Asphalt siding over existing dutch lap pine
Wood painted trim (peeling)
Half-lap roof (10 years life expectancy)

Interior
Large rooms
a bit wavy floor
lathe and plaster walls
Brown painted bedroom floors
Bathrooms large (7x12) but 24" vanity self adhesive floor
Kitchen large (15x13) but no counter either side of sink! and then some old cabinets
Family room (*could easily be turned to 3rd bedroom in each)
Living room
Both have porches
Droppped ceilings

Basement
Split utilities
Washer and dryer
Foundation field stone old but sound
Wood "telephone" pole columns

Both tenants have pets. Second floor cats using existing carpet for litter box.

Asking price $41k

*Cost to change to 3bdrm $1.5k/apt 3k total. Rents to $550.


How does BP evaluate this property? Would you keep the tenants in there and go with a straight 50% rule offer? Would you factor in new carpets, roofing, siding, painting etc?

I think the basic question here is: how do you use the 50% rule as it relates to property condition.