Duplex Numbers analysis

[Jared Smith]

Just found a duplex that has some great improvements in a very large University town. Already has tenants and will not be hard to fill once those tenants move on.

Market analysis says that other duplexes are going for about $300,000 in that area, while this one is listed for $$269,900

I think I can get them down to $259,900

Currently the rent is $750 for one side the $950 for the other side. They have notified the tenant in $750 that they are raising the rent to $1050 in June.  That would put you at $2,000 Gross rental income.  I am putting 25% down. I feel like my cash on cash is going to blow but I will be close to getting $100 per unit. Any advice would be MUCH appreciated! This is in a REALLY hot market and these things only last a day or two on the market.

Thanks!

25% Down on a $259900	Duplex
5.25% Interest Rate
30yr Mortgage
Tax = $1527
$259900 Duplex	Monthly Gross	$259,900
Gross Rent	+$1,700	+$2,000
Mortgage with $1000 per yr Insurance	-($1,287)	($1,287)
PM Cost 10%	$0	$0
Maintenance 10%	-($170)	($170)
Tenant Acquisition 1 Months Rent Each year	$0	$0
CapEX 9%	-($153)	($153)
1 Month Vacancy	-($142)	($167)
Lawncare/Water	-($75)	($75)
Net monthly income	-($127)	+$148