Two Duplexes for sale

[William Carter]

Long time lurker, first time poster.

I am considering a property that has two duplexes on it. It looks okay to me, but I have never bought this type of property before so I need some advice. Here are the details:

The property is in a fairly stable area about 8 miles south of a town with a population

over 80K and a major university.Property is on a main road that leads directly into town.

Unit 1&2 rent for $515

Unit 3&4 rent for $525

When where the rents last raised? Long ago. Current tenants have never had rent raised.

Leases:

Unit 3: One year; expires August 31, 2017

Unit 4: (did not scan; at home; will send this evening; pretty sure 1 yr lease ending summer/fall 2017.)

Unit 5: 6 month, expires June 30, 2017 (just renewed)

Unit 6: 6 month; expires May 31, 2017

All rented.

Asking price $135K

2016 (est)

Repairs: $1,100

Improvements: $1500

Rental income: $18,000

Annual recurring expenses

Water $840

Trash $912

Snow/Lawn $750

Property Tax $2,700

Insurance $2,100

Rent (@ 100% occupancy)

Units 1 and 2: $12,360

($515*12)*2

Units 3 and 4: $12,600

($525*12)*2

Total rental income at 100%: $24,960

Improvements to units 3 and 4

Roof 4 yrs old

New toilets

Hot water heaters 4 yrs old

Foundation drain installed both units 3 yrs ago; warrantied for life; transferable

New rugs; walls painted

Improvements to units 2

Foundation drain installed unit 3 summer 2016; warrantied for life; transferable

New carpets and paint

Improvements to units 1 and 2

New roof scheduled for mid-January.

I would appreciate any thoughts.

Bill