Looking at my first investment

[Troy B.]

I have been looking and studying up on buying investment rentals for a few years but have yet to get the nerve to jump in. I looked at a property the other day and I think it could make a decent investment.

It is a brick flat roof duplex and a single family home both on one lot. Both are in good shape and appears to need very little immediate work. All units are now rented and renters pay all utilities. The property is five blocks from my house so I would self manage the property. Here are the details in case anyone can give me their opinions on this deal.

Price: 98,500 (would offer 95,000)
Taxes: $2200
Monthly rent totals: $1260 month

I contacted my bank for a commercial loan and they gave me a rate of 4.7 on a 15yr. loan, fixed for 5yrs and adjusts at current rate. With 20% down.

Under my current calculations with loan, taxes, insurance and around $2000 in yearly expenses it should leave me with around $900 cash flow and 8.33% cash on cash. If I went with 20yr these figures would be much better but at 38 yrs old and wanting to have it as a retirement I'm not sure I should go above a 15 yr loan. Any thoughts on this deal would be greatly appreciated.