Potential Deal... Help Please!

[Russell Gaston]

So I have an opportunity to purchase an off-market duplex in Spring Arbor, Michigan but I'm nervous about the numbers.  The seller hasn't given a price but they purchased the property 10 years ago for $135,000.  I can see the property from my back deck and its location is great and in a very desirable school district.  The larger 3 bedroom unit is currently rented out at $750 mo and the tenant is a long term tenant.  The second unit is a smaller 2 bedroom and is currently rented out at $650 mo, that tenant is new.  The property needs a new roof and both units could use a good refresh.  A similar but smaller property just sold for $100,000 but that property was in better condition.  How much would you offer on this property?  My analysis tells me $100,000.