Buying property out of state for first time investor.

[Eddie Galindo]

I am really hoping someone will give me their point of view on a deal I like to do now that I am finally ready to buy a Real estate investment property. 

This is an FHA loan and I will be living in one of the units.

I found a duplex costing $ 200,000. I am putting $40,000 down and financing the rest at 3.75 % for 15 years. 

 Monthly rent is $1,600 for both units. for a yearly total of: $19,200.00

Taxes are $3,160 a year. 

Management fee: I am assuming 10 % of monthly rent = $160 per month for a yearly total of: $1,920 I am ready to earn passive income but

to tell you the truth I don't know if I am ready to become a landlord)

Mortgage payment: $1,200 for a yearly total of: $14,400

Total yearly expense of: $19,488

The yearly rent will be: $19,200. I still don't know what I am doing but, looking at the total yearly expense and the yearly income it looks like I am coming out even. 

In calculating the ROI: $19,488 / the money invested $40,000 I come up with 0.4872 and I don't know what that means. is it negative of positive.

Would it be a good idea to do this deal? 

The only plus side I see from my un trained brain is the depreciation I can deduct at tax time. 

Please help 

Eddie Galindo