Help with MFH Analysis

[Derek Luttrell]

Hi All,

I've come across a duplex with a frustrated seller after a drawn-out FHA deal fell through due to the buyer's financing. Evidently the buyer's lender required him to pay off his credit card balance in order to be approved for the loan, and the buyer refused/wasn't able to.

The asking price is $128,000, but I was thinking of utilizing a BP calculator report (shown here) in an offer to show what it takes to achieve my coveted 7% cap rate and 10% COCROI. It's those good ol' $7000/year Illinois property taxes that really eat into the cash flow.

A friend's parents own a triplex in the same town, and they said their water bill is $150/month, so I'm assuming $100/month for this duplex. Please feel free to chime in with any suggestions or concerns with my analysis. Thanks!