Please help me analyze this deal

[Nick Ruffini]

Hey all, I'm looking at a duplex and I'm crunching the numbers. They look decent (COC return is lower than I'd like) but would love any feedback.

Thanks for taking a look!

Rental income: $1600

Expenses:

Taxes: 319.41
Ins: 79.16
Water/Sewage:
Garbage: 
Electric:
Gas:
HOA fees:
Lawn/Snow:
Vacancy: 100
Repairs: 150
CapEx: 100
Prop Mgmt: 160
Mortgage: 536

Total Expenses: $1,444.57
Rental income: $1.600**
Difference: +$155.43 (Monthly Cashflow**)

Down Payment: $29,000 (20%)
Closing Costs: $5,000
Rehab: $5,000
Total Investment: $39,000

Cash on Cash return: 4.78%**

**Note: Current market rates look like I could charge another $75-$100/mo for each unit, raising my cash flow and creating a COC return of 9.39%-10.93% respectively

[Allicyn Aubut]

If that is your goal, Nick, then I would go for it!  I have been taking a similar approach, as I dont NEED the cash flow right now, but trying to find properties that will have rent appreciation in the future or value add opportunities so I can get in and learn.  I can say, its already taught me a lot.  How to raise the rent, have difficult conversations with tenants, setting up systems early for property management, things to look for in future deals, etc.  I really like Brandon's philosophy of not worrying too much about the early deals and just getting in!