Analyzing our First Duplex! Is it a good one?

[Caleb Ray]

Hello BP family,

My wife and I had the opportunity to look at a duplex last night. We love it and want to jump on it, but the numbers are not the typical ones I see.

Price: 250k (we live in rural Indiana)

Units: 2 (1000 SF each) 2 B 2 BA

Large lawn, built in 2004, no capex costs for atleast 5 years hopefully (roof has 10 yrs left, HVAC maybe 5)

Tenants do all the yard work.

Rent is at 850 for both sides

My question...

This is more expensive than I would have liked, but this place is so clean, maintenance is minimal, and there are 2 lifelong single lady tenants in there now, is this a good deal, even if my CoC return is so low? (7.3%)

I think this can cashflow 4k-5k a year, but the risk is very low. 

[Darius Ogloza]

Caleb: not sure how you are calculating but your numbers seem off.  Are you including principal & interest, taxes, insurance and utilities/sewer in your calculations?  Your mortgage should be about $1,000/month alone.