I am looking to make my first investment purchase and I am doing my research on a duplex in my home town about 5 mins away from my current residence.
It's a 2 story 4 - 2 and it looks to be in really good shape. It's in a fairly decent area in town but the property values in this area have dropped significantly and I feel that the seller is asking way to much for this duplex. He's asking $74,000 for it and he's only charging $400 a month in rent. He's says that they are good responsible renters and that they have stayed there for about 5 years.
My problem is that after running the numbers I don't see this property cash flowing for me.
Should I give him a really low offer?
Should I consider upping the rent once I purchase even though the tenants seem to be consistent?
If I could get this property at for example $45,000 than the numbers could work out pretty good.
Any advice much appreciated!
Thanks.
