Duplex Analysis

[Mike Cartmell]

Please give me your opinion on this property I am considering. It is a side by side duplex and seller is asking for $135k but I'm thinking of offering 125k. Both units are currently occupied renting for $650 and $700. Numbers below:

Purchase price: $125,000
Down Payment: $25,000
Mortgage payments: $6,084/yr (PI $507/month @ 5% 30 yr)

Rental Income: $16,200/yr

Vacancy 5%: $810
Property Tax: $900/yr
Insurance: $800/yr
Property Manager 12%: $1,900/yr
Maintenance: $2,400/yr ($100/door per month)
Utilies: $300/yr water
Advertising: $200/yr

Total Operating Expenses: $7,310
Net Operating Income: $8,890
Less Mortgage Payments: $6,084

Total Cash Flow: $2,806

Cash on Cash Return: $2,806/$25,000 = 11.2%

Any errors in my numbers?

Thanks in advance.

Mike