Help me analyze this deal

[Ed McIver]

This is the deal as it is right now. The property is a 100 year old duplex. 1 side is renovated and the rent is at market price. The other side is not renovated and $450 below market price (per month). The property also has garages If I purchase the building I will rent out for additional income. ($100 each x2 garages = $200)

If I purchase the building I will increase the rent $200 on the below market apartment. If the tenant moves out I will renovate the apartment to bring the apartment to a  full price rental.

So I think I can increase the rental income by $650/month. But I have run these calculations as the building is right now. I have offered him $110.K  He is insisting on 125K. 

I am inclined to walk away. What do you think?   

View report

*This link comes directly from our calculators, based on information input by the member who posted.