Second opinion on Duplex in Chattanooga TN

[Account Closed]

Currently evaluating the purchase of a duplex. I need some second opinions 

List price $57,500 

Current Rent  $889 gross (Both sides)  one long term (4 years) at $400 one short term (6 months) at $490 

Desired Rent (section 8) $1,200 (both sides) 

2% rule (gross)  2.09%  

Comps support $600 / side on section 8 

Needs a few thousand put into it, some flooring, window HVAC fridge, repainting. 

I would appreciate some advice! if any additional info is needed please let me know! 

[Brian Levredge]

Have you looked at CHA  (Section 8) market rents by zip?  You may not be able to get 600 per side depending on the location.   You need to revisit your analysis as well.  You want to be all in at 2% at a minimum in the rougher parts of town here.  Add capex into the equation and rerun.