Am I missing something?

[Jeremy Clark]

I’ve been analyzing deals and everything in my area seems to have such a low profit per door once I factor all the expenses and the mortgage and I feel like I could potentially be more conservative but dont want to talk myself out of every deal and never do one. I know the best way to get better deals is off market but just starting out I’m Leary of a few things to go that route so like the idea of a realtor and mls initially. I plan to self manage the properties initially until I get enough and it makes more sense to hire it out. I have all the ability to fix things on my own so not too concerned about that side of things.

I think I may have found a potential deal and would appreciate any and all feedback. Here are the numbers.

Duplex 3/2 and 3/1

Asking $349,900

20% down $69,980

Gross Rents 3600 2@$1800

P/I at 4.5% $1418

Taxes $385

Insurance $150

CapEx 10% $360

Management 10% $360

Vacancy 7% $252

R/M 7% $252

Total expenses $3177

Net profit $432

43200- 17500 mortgage= 25700/69980 = 36% COC return

What am I missing? I feel I’m being conservative cause I don’t want to lose but am I really?