First time using rental calculator

[Brook Boatman]

Hello everyone,

It is my first time using the rental calculator and I'm getting a result around 10% ROI. I wanted to make sure I'm using the calculator correctly before I start analyzing additional properties.

Below is the information from the listing:

Type: Duplex

Price: 215,000

Built: 2000

Cap Rate: 8.5%

Description: 

Occupied duplex located near a large shopping center, and city park. This investment property is only 19 years old!  Features large 2 bedrooms with plenty of closet space, 1 and 1/2 bathroom in each side, new roof installed in 2014, large deck, 2 car garage, concrete basement ready to be finished. They are city inspected and the rental license is in place. 

Taxes: 3,829 annual

I contacted the realtor and both tenants pay utilities, one rents for $950/m and has been rented for the last seven years.  The other unit rents for 1,000/m and has been rented for the last nine years.

---

- For purchase and after repair value I selected 215,000

- Closing cost of 3,000

- 5% down with 4% interest over 30 years

- Other charges from lender I listed as $500 as I do not currently have a renter's license

- Monthly insurance 100

- Vacancy 3%, Repairs 5%, CE 5%, Management 9% (Although I will probably self-manage as it is only 2 units)

- Future assumptions all at 3%

---

Any input is appreciated!