Good Deal or Not? Duplex in Atlanta

[Ebahi Ejerekhile]

Hi BP, 

Hoping to get advice on a property in a C neighborhood (Westwood) in Atlanta, GA.  I want to caution that it's a deal I found yesterday.  So please tell me what I'm missing or forgetting and what I definitely need to ask from the seller. 

• Selling Price: $125K Appraised (according to seller at $130K)
  • Seller financing with $3000-$5000 down
• Income 
  • Unit 1 - $850
  • Unit 2 - $800
• Repairs
  • According to the seller it's been recently renovated. 
• Tenants 
  • Currently rented
  • Tenants pay all utilities
  • Section 8 (house meets regulations)
    
    • tenant 1 has been there 3 years
    • tenant 2 has been there 2 years
• Insurance and Taxes
  • $1450

I did not account for estimated repairs in my BP calc analysis however I did place 5% for repairs and maintenance, 5% for vacancy, 5% for Capital Ex, and 10% for management fees.   Cashflow according to BP calc is $600+. 

I have not discussed points or interest rate with seller.  I'm hoping he won't charge. 

Seller is an investor and is currently the PM of this property.  He is selling because he wants to invest more his area (Alpharetta).

Do you need more information to analyze? What other information should I get from the sellers?

[Kevin Manz]

Seems like a good deal. I'm just curious why he really wants to sell? If he is offering seller finance with only 3-5000 down, that doesn't really give him a whole lot to re-invest with. I would definitely try and verify the numbers he gave you. Best of luck.