About to close on my first rental multi-family :)

[Dhwani Shah]

Hey guys, this will be a slightly long post, so please don't mind. It's an exciting one for me, for sure :) ...I'm about to close on a property that I found off market while just driving through a neighborhood back from the grocery store. I'd been looking for a multi-family and luckily, this turned out to be one (duplex). Been talking to the owner for about month+ and have a partner going in on this deal with me as well. It'd be great to get some of your alls experience and opinion about this in case we missed anything or if it is/is not a good deal. 

One unit is occupied with nice tenant that's wanting to stay. Second unit just was vacated that def will need new carpet, paint, and small misc things. Expecting around $4000 for carpet and paint based on a few calls. And just $2000 more for anything else. Conservatively, expecting total of $10k max of immediate expenses. So far we've:

1. Looked through owners P&E statements to make sure no major things coming up last 2 yrs

2. Talked to county to figure out tax situation and any other misc charges that may change based on purchase price

3. Looked at properties around the area for market rent and market value. Currently one unit gets $700/month and other unit was also set for that before it became recently vacant. The first unit tenant is still there (been for 2 years) and wanting to stay. Based on the rent in the area, we think we can easily get $900-950 for second unit with renovations. And similarly, increase the first unit to around $800-850, but we didn't want to do this right away until second unit was filled.

4. First unit was also recently renovated in 2014 with a new paint, appliance, roof, windows, etc. Furnace has also been changed in the past few years. 

4. Just had an inspection done yesterday and nothing major came out of it that would need immediate action other than closing some loose hanging wires and other minor things.

So this is the biggest research and work we've done. Price ask is 175k with 10k renovation, 20% down with 3.75% interest and 1.5% closing cost to us and assuming the below percentages and costs and rent being $800 first unit and $900 second unit, here is the breakdown:

Now this is the a conservative scenario (not taking into consideration a higher rent and lower renovation costs, lower tax, lower insurance etc.). We are sold on the fact that this is a good deal. It does meet @Brandon Turner $100/door rule and also the one percent rule almost. This is a 6.6% CoC and 6.8% cap. Thoughts? Did we do all of our research? We're not making any mistakes are we? Didn't want to get stuck in analysis paralysis, but just need some honest opinions to make sure we're not going crazy :)

Thanks everyone!