Two Duplex Deal - Looking for comments and feedback!

[Kevin Asgharian]

Hi,  Looking for feedback from the community!  Long time lurker, first time poster. 

After a few months of hunting for my first deal, I found a MLS listing which I was unable to see the inside but the property external faces have been kept up well. I talked to the Property manager and they recently dressed up 3 units that had deferred maintenance - vinyl, carpets, paint, etc. The 4th unit the tenant is long term 12 years and hasn't requested any changes.

I offered 700k for both then planned to walk through and do a complete assessment.  The seller countered with a 760k and conditions that the tenants had to stay and the P&L would not be provided.  I sent them a polite note and walked away.  Was I correct or too conservative?  

Asking price for each duplex 385k.  The units have 2 bed 1 bath and a parking garage.  Its one shared driveway for the duplexes that T's into each building. The location has better than average schools, close to a highway and a decent neighborhood.

Rent Total - 4616 - by unit 1000,1170,1195,1250 which average to 1154.   The low rent one is a family friend who has lived there 12 years.

Insurance total 1200

Taxes total 6k

Water is provided to tenants due to a shared meter situation. Unsure how much they are using but if I had free water, I'd probably use more than if i had to pay for it.  I'd plan to sub meter it.

Market cap rate 4.91

Annual Net Operating Income 31,447

Based on the numbers no matter how I slice it, I can't get a decent cash on cash return for anywhere near the asking price.  If I've missed any details, let me know and I'll put them up.  

The only thing that remotely makes sense is to divide them up and sell them as attached homes which the County may not even allow. 

Appreciate your comments.  Thanks!