First time post here, I have been interested in making the jump to purchase my first rental property now for awhile. Its a scary choice but I think if I start off with something on the lower price scale it wouldnt be a huge risk, besides the possibility of larger repairs earlier maybe. There is a lot i need to learn and this forum and the podcasts have helped me out a lot so far. Now im ready as ill ever be to start the journey. I feel if I i dont start somewhere ill be one of those people that always talk about it but never actually do anything.

I have found a place id like some input on, It is a duplex in the Detroit area of the Morningside neighborhood. It seams like an area that is starting to improve and is pretty close to the Grosse Pointe areas which are pretty nice and pricey here.

The asking price on the property is $46,900.

Im estimating closing costs to be $2500

The add says it should be able to rent for $700 each side so being conservative I estimated at $600 each side for a total of $1200 per month.

I am hoping to negotiate the price down a little but to keep things conservative I estimated a down payment of 20% on the full asking price. Which would be $9380.

Im estimating the taxes to be $1440 per year or $120 a month.

Vacancy at $200 a month (not sure how to calculate so I figure if its vacant for 2 months a year that would equal $2400 loss on rent divided by 12 months?)

insurance estimated to be around $25 a month

Repairs estimated at $100 an month

Cap X I put at $200 a month

and I included property management just in case i decide to go that route at $170 a month.

Zillow says the mortgage would be about $188 a month

That would put a total of $1003 a month in expenses and 1200 a month in rent

cash flow would be $197 a month if all the calculations make sense.

total cash needed would be $11,880.

I get a cash on cash ROI of 19.89% with these numbers.

With all this said I think it looks like a good deal, do you guys think there is anything im overlooking or anything else I should consider in analyzing this deal? Any tips or advice?

https://www.biggerpockets.com/buy_and_hold_results...

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