First deal, 2 units off MLS both long term renters.

[Zachary Hutnick]

I was taking a walk around my neighborhood where my girlfriend and I rent an apartment, i came across a for sale by owner sign outside a mid 1900s home so I called the gentlemen who owns it.

Half a double with two units both units are 2 bed 1 bath currently renting for 900 each approx and have had long term tenants 12 years+

Not certain of the square footage.

Has a one car garage in the back of the property.

Tenants have acess to washer and dryer in basement.

Asking price $189,000

Possibly motivated seller, selling because of retirement and wants to sell it this year for capital gain reasons.

this would be my first property.

[Tony Bellantuono]

@Zachary Hutnick  I'm also just getting started, working towards purchasing my first property in the next year or so. However, I worked on Commercial Real Estate deals as a broker for almost three years in Brooklyn NY, and have a broad understanding of multifamily property. 

The first thing I would do is breakdown the deal to understand if you could generate any cash flow.  

Financing:
Are you looking to take a loan out or buy cash? If the owner owns the property free and clear of a mortgage, maybe he/she will hold the note? If you are looking for a loan, I'd go get pre-approved to understand what you can budget for and to understand your dept payment (will explain further below)

Revenue:
Each tenant is paying 900, so your Gross Annual is $21,600. What are other 2 bed 1 bath apartments renting for close by and what are the lease terms for the current tenants. 12+ years shows rent stability but are you sacrificing a good amount of rent for that stability? Knowing the terms of the current leases will allow you to know if/when you can increase rents. If the current owner doesn't have leases, in my experience, run for the hills.

Expenses:
Next you want to figure out what you could net from those rents by figuring out your expenses:
-Insurance
-Utilities (if the tenants don't pay their own)
    - electric
    - water/sewer
    - heat 
-Taxes
-I'd factor in a percentage of the gross rents for maintenance depending on the condition of the property:
   -when the roof was last done
   -water heater
   -boiler
   -when the property was built
-Management (if you aren't going to do this yourself)

Debt Payment:
After determining your Gross Rent and subtracting your expenses you will have your Net Operating Income or NOI, but if you hold a mortgage there is one more expense you will need to subtract, your payment.
NOI - Mortgage Payment = Annual Cash Flow
Divide that number by twelve to get your monthly cash flow.

I hope this helps. This is my first reply on BiggerPockets as I am new to the network. Let me know if you would like me to explain any topic further. Best of Luck.