Why would I not do this deal?

[Michael Marston]

Duplex @ $395/mo. each side.; small ranch @ $375/mo.; another small ranch @ $450/mo. All currently occupied. Tenants pay all utilities - except duplex gas which is paid by LL (approx. $2K per year). Taxes = $2,000.

That's $19,380/yr gross rents. Estimated 50% expenses would leave $9,690 NOI annually.

$50,000 sales price.

It is in a very small, rural town - less than one thousand people. Close to interstate. After talking to neighbors, there has been high turnover, but units have been rented most of the time.

[Alex Craig]

I am only giving you reasons since you asked. This may be a great deal, but simply giving reasons.

1) Building has a ton of deferred maintenance, possibly even falling apart

2) Less then 1,000 people -- small tenant pool

3) With that small tenant pool could also mean a terrible tenant pool

4) With such a great deal, why is there not a lot competition (maybe there is)

5) With being a small town, maybe it is harder to get maintenance done or vacancies filled efficiently 

Maybe you could share more details about the lot and house itself.