Best option is to simply have adequate insurance coverage (must have anyway).

Hello,Our duplex is insured as a single family home.

It looks like just one section had a tree come down on one section but considering what I have seen from this storm, the damage looks really minor.Now we went through our insurance for damage on our own home but how would buying something like that work?

So that's another $475/mo total for both.Did you also include insurance?  

One draw is the large insurance company there, which brings in new employees and their families.

You will see this sometimes when there are known issues and the seller doesn't have the resources or the "mental strength" to deal with the process anymore.If you want to proceed further, make sure you speak to your lawyer about what's needed.

Also double check you can even get insurance.

Well then you take the $900 and multiply it by 12 to give you a year's total income and then subtract your yearly fees from that which is generally about 35%  (10%-Management, 5%-Maintenance, 5%-Vacancy, 15%- Insurance & Taxes.).

Once you claim in on your tax returns then a lender will calculate your income based on a formula that takes into consideration the amount of insurance, taxes, mortgage interest, and some other line items on your Schedule E portion of your tax returns.  

Up date one side by adding additional bed and bath (the other has already had this done and is in excellent condition)ARV: 475-500KMonthly income: $3200Monthly expenses: $2283 (mortgage, fixed and variable expenses, future assumptions) see below-monthly P & I: $1622- fixed expenses: $340/month (water/sewer, insurance, property taxes)- variable expenses: 2% vacancy ($64/month) , 5% repairs & maintenance ($160/month),  cap exp 3% (96$/month): No property management since we do this ourselves for our rentals.- future assumptions: 2% annual income growth, 5% PV growth, 2% expenses growth, 6% sale expensesBigger pockets tool sheet with above data:Cash flow: $916/monthCash on Cash ROI: 6.65%-7.57% depending on rehab costsPurchase cap rate: 7.15%I know this does not meet the 2% or 50% rule but it seems like a good investment for the area.