First-Time Investor Seeking Advice on Purchasing an Old (1930s) Duplex in Texas

[Neal Daftary]

Hello everyone,

I'm a first-time investor and I'm looking at purchasing a duplex in Texas. I'd love to get some feedback and advice from more experienced investors. Here are the details of the property:

- Leased until July 2025: $1400 and $1450 per unit per month
- Built: 1930's
- Zoned O-2

Information in the Rental Report:

- Vacancy rate: 5%
- Purchase Price: $310,000
- Repairs and maintenance: 7%
- CapEx: 5%
- Property tax: $3,600 per year
- Insurance: $2,400 per year
- Roof: Broker mentioned it doesn't need immediate attention but will likely need replacement soon (~$15,000).
- Cash flow: The report shows a $177 monthly cash flow.
- Condition: The house is completely renovated. One HVAC was replaced and second one had fan motor replaced. 

I asked the broker about the electrical and plumbing systems. He mentioned that "some plumbing work" has been done, but he’s unsure about the electrical system.

Questions:
1. What are your thoughts on this deal, given the information above?
2. What additional questions should I ask the seller and the broker, especially for a property built in 1937?
3. What other aspects should I keep in mind and look out for in a property of this age and condition?

Any advice would be greatly appreciated. Thank you!