First time trying to invest in Real Estate

[Aakash Shah]

Hello BiggerPockets family, I needed some helping analyzing a deal in California. I am trying to get into multifamily units, so I have reading mostly Steve Berges books and been learning from the BP site. There is a duplex, 2 condos- One is a 2bd 1 bath (2 stories), and other is one story 1bd 1 bath. Price is 235,000 and rent generated is 815 from larger unit and 750 from smaller unit. Property is older and may have some opportunity to develop some value, however, I haven't had a chance to look at it. Using the 50/50 rule, I believe would put the cap rate at 4%. I am still waiting to hear back about more details. At first glance for a California property, what are your thoughts? All the deals I find in California seem to have very low cap rates. Any advice or feedback is very appreciated!