[Calc Review] Help me analyze this deal

[Manmath D.]

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So I'm going to look at this property tomorrow. I had talked to my local contractor in passing that I'm looking to buy a duplex and he introduced me to this seller. She let me know that as per comps property is worth 215k but needs roof done. She will give me a credit of $10,000 towards roof repair. Selling for $205,000. Rent collected is $ 1460, owner pays for Water/sewer/garbage which is an Avg $200/month. I was told there is a room for rent increase upto $10 to $20. Ideally I want to put 10% down, but even with 20% down it doesn't look good. 

It is very rare to find multifamily house here in rural WA and people are looking to rent. The same seller has One br house she renovated going on market next week for 89k. I'm tempted to go that route. Reason being that my monthly payment will be around 500 to 600 and I can start saving aggressively. Currently I'm renting with payment of $1200/month and I don't like that. 

I would love to find a Multi family but theres none on the market right now. I am thinking at what price point will this deal work for me. 

If I were to live in one unit and rent other, according to my broker my monthly payment would be $1220 for 10% down(tax, insurance, PMI). With this scenario with rent of $735 coming in, my payments will be $485 + ($200 for garbage/sewer). 

What is that property is free and clear? I could ask for owner financing, make an offer around $170k. They could make money through financing. Does this even sound right ? 

Thank you