I am looking at a Duplex in my local area (New Albany, IN). 

The asking price is $189,500.

Without doing much research, the ad says 1425 total rent to be expected between both units.

By my calculation that's only about a 5.5% Cap rate assuming 60% NOI.

This seems pretty bad, I seem to recall hearing that you should generally shoot for around 10% cap rate.

Suggestions?

Cap rates don't always work when analyzing deals. A 10 cap rate is what a lot of people shoot for, but it's not always easy to find in all markets. I would look at what the actual cash flow is going to be. 

That's a much easier way to determine if it's going to help you to meet your goals or not. As a new investor, It's a lot easier to analyze if a deal will work by looking at how much you will bring in each month after expenses.