Duplex Analysis what would you do

[Brandon Cooper]

So im looking to buy my first duplex. The price is 60k. It has 2 month to month tenants in place producing 1,100 in income. So heres a bit of the break down.

Purchase price: 60k

25% down at 4.5% for 30/yrs

Repairs: 10k

Yearly taxes: 1160

Insurance: $100 (this is an estimate)

Vacancy 10%

Cap Ex 10%

P&I $228

Repairs $55/month 

So this puts my montlhy expenses at 700/month leaving me w 400/month cash flow at around 1.5%.

This seems like a good deal with a value add with some cosmetic upgrades. With a little work it should have an ARV of 100k. Please give me your thoughts. Thanks