From a monthly cash flow point of view there is no deal here, even if you put 20% cash down, by the time you received the rents and paid the PITI, and utilities, you wouild be left with little or nothing each month. That does not include periodic repairs or tenant turnover other maintenance. On the other hand if the property could appraise for $75,000 you could realize $20,000 in equity, not a bad exchange for a break even or small monthly negative cash flow.
One thing that bothers me is you mentioned this is a single family home or a property in a predominantly single family neighborhood rented out as a duplex, many people attempt to skirt local zoning codes by doing this and calling it a “non-conforming” duplex. In a lot of cities this is an illegal practice and the landlord can be fined. You should definitely check with the local county zoning codes and find out what the story is there. Wouldn’t it be something if the reason the current owner wants to sell is because the county zoning commissioner is about to hit him with a big fine for zoning violations?
Older 3Br/2BA house in a mostly single family neighborhood. Close to everything. Has been converted to a duplex. One 2BR/1BA presently rented for $385/month. The other is a 1BR/1BA rented for $200/month. Total being $585. Could be $675 according to market. The original asking price was $68,500. Talked to agent 5 months ago, he said the least the seller would take would be $64,000. The listing has expired. The seller called me saying he had to net $55,000. Asked him if he could help in financing, he said how? I said I would probably need 20% as most banks that I deal with will do only an 80% LTV. He said for me to check with the banks and see then he would see how he could help. I have a very large credit line and could pay all cash and then put a mortgage for 80% LTV appraised value, maybe 90%. Any ideas on how I can put money into my pocket on this deal. Would like around 2K for a vacation. Loan will have to be a 15 year 8.25%. Any suggestions? I think the appraised value would come in the low 70’s