Possible first deal looking for advice

[Shane Brown]

Hello,

need some advice on a property that I am looking at. It is a duplex that is small, 1,100 sqft. Two one bedroom one bath apartments that need updating. It is going for 109,000 I want to try and get it for 90,000.

Monthly gross rent-$1650

Expenses 

Tax-264 a month

Water- 100 per month estimated

Heats-100 per month estimated 

insurance-100 per month estimated

vacancy-115.50 (7%)

Capex 82.50 (5%)

Repairs 148.50 (9%)

Management 165 (10%) 

P&I 386.51

Garbage 50 per month estimated

Total 1,511.68 

Monthly Cash flor 138.32

COC- 6.64%

Pro Forma cap rate-4.84%

purchase cap rate- 7%

2% rule 1.70

I don't know if the seller would accept 90,000 but its a smaller place needing updating and has been on the market for about 130 days. It also is on the close to the rougher part of town. This will be a buy and hold.

Thanks for any info and thoughts!