11-12% IRR - should I make this investment?

[Andrew Larson]

I'm on the clock to buy my 2nd rental property (a duplex) and I'm calculating a 11-12% IRR over 10-20 years. I want to buy and hold. I often see 15% as the required rate of return for real estate investing. I have a lot of time invested in this property already and feel like I understand thoroughly what repairs will be required. I like the area and rental climate. It is an older house that I intend to put $15-20,000 into right away to address a structural issue. I use conservative growth figures (2% rent escalation, 2.5% appreciation, 5% of rent for repairs, etc). Should I walk, or buy it?