Help me analyze this deal: Overpriced Duplex?

[Jocilyn Oler]

I have the chance to buy a 1986 duplex in Ogden, Utah that has not yet hit the MLS. I would love if someone would give me their opinion on this deal. I know it is overpriced, but it is appealing to me because I live 5 min up the road so maintenance would be super convenient.

Asking price $410K, under contract for $396K. Currently left side is rented with a tenant that has lived there for 5 years. Right side just became vacant. Rent have been $1150, but plan is to increase rent to $1100 with tenants paying all city utilities (~$70/unit/month). The current owner has been paying city utilities for both units (~$135/month for both). Annual property tax: $2000. Water heater and furnace are both less than 10 years old. Air conditioner is over 10 and for expense planning purposes we can expect to replace that within 5 years. 

Total square footage is 1,792 so each unit is 896 sq ft. Each unit has 2 bed, 1 bath, nice sized kitchen and living room. Double carports on each unit with longer driveway so 4 cars could fit on each side with small storage closet at back of carport. Shaded and grass yard. Forced air. The units are in decent shape, but nothing fancy. They could certainly use a remodel to look nicer, but as is they are functional and basic. Basic shed included in backyard.

Thanks in advance with your thoughts on this deal!

[Eric James]

Rents are $2200/month total for $396K? That's a horrible deal.