After research and discussion with the city - The property is CBD now, was R1 prior, and in this city a duplex is OK for R1 under a conditional use permit.... 

That's not a ton, compared to CA and NV and NY and FL, but it also doesn't lose much, if any, when things go south.Also we really don't have a ton of supply around here, as the big building uptick has been only fraction of what they used to be.  

Prices of the homes are too high compared to rents generating a net 7-8% whereas I’m looking for 9-10% range.

@Marlon Long it also could be that you asking price is the only one where investors could get a sensible return compare to most of the folks who thinks 3%-5% is acceptable return and jack up the price as such. 

Property value prior to fire was 139k, i owe 32k on the property.. so it would be around a 100k+ gain

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

Pretend you are them and look for another place near by that is comparable to yours..... what's the rent there?

If you haven't acquired previously, caution not to attack on multiple fronts right away...one at a time, learn from it and improve as you go...we are 1000% better equipped to acquire from the prior experiences...they do take time after acquisition for dust to settle and for you to see the effect as well as what strains it puts on your existing processes and infrastructure. 

They like to get creative with their comparable properties. 

You don't need a specific buyer lined up in advance prior to putting properties under contract.