Numbers Check for potential purchase

[Chris McMann]

Hello,

I am new in the multiplex rental market and would like to bounce some numbers off of the people who actually know what they are doing. I am looking at purchasing a duplex that has a 3/2 and a 2/2 unit. Asking price is 549K. After speaking with a local property manager that manages property in the area of this residence. He says that he believes he cold get 3450$ for the 3/2 unit and 2400$ for the 2/2 unit for a grand total of 5850$ a month in rent. I will list the numbers that I used to quantify the properties potential monthly earnings and see if everyone feels the same about the property and my values. After using the bigger pockets calculators it shows me having a monthly cash flow of 1505.77$ and a COC return of 15% and a CAP rate of 9.05%. I feel as though I have not computed these number correctly as I did not expect such a high return month to month. Does this look correct or have I left something VERY big out of the equation? Thank you for your time and a chance to learn and build wealth.

Asking price 549k

potential rent 5850$ a month

30 year fixed @ 6%

20% down 109,800$

Tax 1% (5490$) guess

Insurance 200$/month guess

Maintenance 234$/month

Vacancy 4%