FIRST DEAL. Is it too good to be true?

[Kayla Grau]

I'm super nervous about my first deal and I want to know if this deal is any good. I will be house hacking a duplex selling at $163,000. After I analyzed the numbers I would be cash flowing $623/month after I move out after a year. This seems to good to be true. I will be using my VA loan so I won't have any money down and I've been approved for a 2.75% interest rate. I also wan't to try to have the seller pay closing costs. Property taxes are
$1,222.75. I calculated 5% vacancy, 5% repairs/maintenance, and 10% capex

About the duplex: 984sqft 5,900sqft lot. Two 1bed/1bath units. Both units with separate address with separate electric meters. Fully furnished with ''Turn Key'' rent: $1, 700 gross monthly income. Rented month-to-month. Both units with front porches and big back porches. Built in 1952. Ceramic tile flooring in the kitchen, living room and bathroom. Fresh paint. Fully furnished, has laundry (washer/dryer); TV; dishwasher; refrigerator; microwave; coffee maker; stove; toaster; waffle maker, all dishes: pots and etc. Backyard has storage shed and 34 ft. RV (will transfer to new owner, can be used for workshop, hobbies or other) Seller credit for roof with acceptable offer

[Jonathan Swartz]

Those taxes look very low (could just be Texas is so high). Double check that and make sure you don't include any exceptions that could be giving you inaccurate numbers.

For a house that old, the maintenance and CapEx may be low. You'll want to assess the big ticket items for age and condition. Also for vacancy, are you expecting 1 or 2 year leases? If 1 year, think about your turnover time. Even at 1 month vacancy, you'll want 8-10% to cover that month.

Hope that helps!