Im in escrow for a duplex in Montclair CA. Id be living in 1 and renting the other. I just had my inspection done on the property and its in need of a complete overhaul. From living room, kitchen, bathroom, plumbing, electrical, and roof within 5 years of so. 

Offer was accepted at $420k and renovations are estimate at $50k. When doing the math, i'd be purchasing a property in need of alot of work at $312 / sq ft. while comp properties sold within past 60 days (which are in better shape) at $266-$290 per sq ft.

This would be my first investment property. The duplex is 1344 sq ft on a 7720 sq ft. its zoned for up to 6 units and all the properties on the block have 4 to 6 units on them. My mortgage when accounting for principle, interest, tax, and insurance, including PMI is $2250. Market rent for 1 bed 1 bath is $1250. Therefore i see potential in this property.

But is there something I am not seeing? I don't have a mentor so I'm pretty much figuring things out as I go. Any advice is welcome, i want to make sure my first experience is a good one!

Thank you all in advance

This is not likely to be a good investment, @Daniel Higuera . Where do you see the potential?

Max rent after you move out is $2500, you're PITI is $2250 (I actually think your payment will be ~$200 more). That leaves only $250/month to cover vacancy, repairs, CapEx, management, water/sewer, lawn care, and administrative costs. You'll never cash flow. You're going to lose money on this each month, probably $600-700/month.

Plus it needs $50k of work and you're probably overpaying by ~$60k.

I would echo the no on this one. At $420k, really $470 k (or more) after repairs, I would need much more in rent to justify the outlay.  If you have accurate data in terms of per sq foot cost, it’s not even remotely a good deal even for the area. 

Drop this one and keep looking, you will find something better. 

@Jaysen Medhurst @Sebby Gabre Madhin Thank you both for your feedback. My agent is going to renegotiate the price. If the seller doesn't agree then I'll be pulling out of the deal.