Fully Leased Duplex in Up-and-Coming Area

[P M]

I drove through an up-and-coming area of a city nearby yesterday, and found a FSBO duplex with the owner asking $70,000.

One side rents for $515 and the other rents for $450. Roof has been redone recently, and new linoleum has been installed in the kitchens.

The wild card is what type of rate I could get if I put 20% down. I am assuming 7% right now, does that seem reasonable as a rate I might get?

I ask because I assume if I want to meet the 50% rule requirements, I need to get the price down or get a rate closer to 5%. Thoughts?