Duplex in great neighbourhood in Canada... Deal or no deal?

[Jamie Montpellier]

a top and bottom duplex for sale... Asking 169900$ but I figure 160k and it's a done deal with top 2 bed 1 bath rents for 950 and bottom for 825.  property taxes are 2000$ per year...

30 year. Mortgage with 5 year fixed at 2.59% approx payments 508$ a month... Vacancy rate is approx 3-4 % in that area but I priced it in at 5% and repairs at 8% plus management At 10% and I steal come up with 230$ cashflow...

What do you guys think ?

[Chad U.]

@Jamie Montpellier

From the math you've presented above, I'm coming up with $668/mth cashflow, but there's insurance, say $100/mth which still leaves you ~$550.  There will be capex of approx 10% of rent to keep in reserves as well.  

However, anytime you can find a property in Canada that meets the 1% rule, it's either a really good find, or there's something wrong with the property.  I would get a good thorough inspection done.  Do you have a good investor friendly realtor representing you?