Investment Analysis on Duplex in Central Florida

[Ingrid Poole]

I would love to chat with some established investors about a duplex deal that I'm analyzing in Polk County, FL. Estimated current market value is ~$26k, listed for $32k. Needs approx. $26k-$30k in repairs (roof, A/C [central], kitchens, baths, potential plumbing and electrical) for a total in of $52k-$56k. 

Market value after repairs is about $60k and expecting a rent of ~$700/unit (likely section 8 tenants; rent of similar duplex was posted on Section8.com). Goal is to buy and hold and rent (I will not occupy).

I feel like I'm being overly conservative on my monthly expenses (67%), excl. debt service (4% rate, 12 yr term). Any recommendations would be helpful. Right now, everything is saying to walk unless rents are higher or expenses are lower. 

[Brendan J.]

What's your breakdown on expenses? I would tend to agree that 67% does seem high. Also explain the 12 year term? No options for longer amortization?