Just bought my first rental property. Not sure if it was a good deal or not. Help

[Tom Vic]

hello, 

My name is tom. I am 26 years old. I just bought my first duplex in a suburb in Rochester , NY.

I was looking at calculating return on my investment and using 50% rule to determine if I made a good deal. I'm confused and if my math is correct than my return on investment is not adequate enough. Any help we'll be greatly appreciated.

So here's the details

Purchase price 117,000. 3000 in renovations= 120,000

Dp 23,400 (20 %) closing 6600 = $30000 out of pocket

Mortgage including taxes 950 month

Apt 1 rents for $900

Apt 2 rents $1050

My calculation that my income $1950 x .50 =  975 - 950 ( mortgage )= 25. 

Now since my taxes are included in the Mortgage change the calculation?

Thanks for help and any advice will be greatly appreciated. 

Tom

[Ursula B.]

@Tom Vic Congratulations on your first rental.  More importantly than a good deal is the fact that you took action...that's the hardest step.  Learn all you can from the experience, and you'll get better and better at spotting the great deals!

Ursula