Running the numbers, Duplex has low Cash Flow

[Nick DiTommaso]

Looking a 2 decent duplex in a town near by. Good low crime and great school district, I am focused on this area as local restaurant chains are building in this location.  149K and 135K, Both 2/1 and 135K needs some updating.   

But after running the numbers, estimating the tenant to pay certain utilities, not including Garbage/Lawn, and having variable expenses of Vacancy/R&M/CapX is at 30% of rental income, conservatively high, cash flow does not look too profiting to me. 

Plan on Year 1 to occupy one unit and rent the second unit, but Year 2 I would be saving to move to a SFR. After mortgage calculating and estimating the rental rate judging from the rental rates in the area, I would only cash flow around $300. Is this reasonable?

With all the factors accounted form has anyone had similar outcomes? A mortgage would be around $1050 when putting 4% down and having a conservative rate and renting would be somewhere around $1000 for that area, maybe a little more depending on the condition of the duplex. 

I am a conservative person saving for those rainy days or big fixes so I could assume that's why I could be cash flowing low. Return on Cash comes out to 0.2. 

$300 in positive cash flow on Year 2 and the invested would be $10,000+$8,000=$18,000. $8,000 being the amount paid on mortgage Year 1. 

With all these factors, what could I do to better cash flow? Lower Mortgage payment, lowering expense, higher rent? Any advice or experience knowledge can help.

Thanks!

[Jojo Joy]

Have you considered buying this property with 1st lien HELOC, paying all your income towards paying off the HELOC and using line of credit for your expenses? This way you are building equity at accelerated rates and thus net effective cash flow is much higher.