I purchased my first duplex 7 months ago, and am close to purchasing my second.

This property was originally listed @ $46,000, then dropped to $35,000 and more recently dropped to $29,900. It has been listed with an agent for 3 years and is still on the market.

My partner and I put in an offer of $20,000. The sellers came back @ $27,500. We came back @ $23,000, with our goal when we started to be $25,000.

The property is currently rented pretty well below market rent, and the tenants are on month to month verbal leases. I figured we can bump the rents to the price that my other duplex is getting around the corner. This property is in better shape and has more sqft.

The $6500 rehab cost does not need to be done right away. The main roof is ok, but there is a smaller front and rear roofs that need to be replaced, as well as some other cosmetic things.

This is how it looks with the way it is currently rented.

This is how it looks when we adjust the rents to reflect what they should be.

Let me know what you guys think...