Long time tenants are on month to month leases and utilities is currently included with the rent.

You can utilize owner occupied financing, and have a tenant help pay your mortgage.

What he will like is the monthly income, what he will hate is the tenants, utilities, maintenance. 

For a duplex, IF utilities are cleanly split, I look for more like a 1.1 to 1.15% MROI since they don't have the market gain potential and are usually sold to another investor.

I purchased a townhouse at auction (last year) and did an extensive update. 

My numbers are based on net return and include principal & interest loan payments, insurance, estimated taxes, utilities (i have to pay them), and property management.

4 adults and 1 child in a three bedroom starts to get tight and will drive up certain utility expenses and increase wear and tear. 

I'm going to be starting a campaign utilizing REIRail shortly.

If you have a duplex where one side covers the mortgage, then that would mean you are living for free, minus utilities.

I want to spend less than $3,000 on inspections and closing costs I want to spend less than $20,000 in initial repairs and rehab Schools above 6 rating Tenants pay all utilities Ideally: Rent 1% or more of ARV Ideally:10-12%+ CoC ROIIdeally: I want minimum 100+ monthly cash flow or 100/door after ALL expensesWhen possible, I want to purchase multifamily units (2-4, max 8)Values we use in our calculations: 5.5% interest rate, 30 years, 25% DP 10% vacancy 6% repairs and maintenance 6% capital expenditures 10% management fees 2% annual income growth 2% annual appreciation growth 2% annual expenses growth 6% sales/exit expenses