Norfolk Duplex Purchase Final Numbers Look Correct?

[Sean McDowell]

Hello everyone!  We completed our first duplex purchase the end of November (yay!) and now have both sides rented out (technically one side is owner occupied, but using our other side's current rental rate for our numbers).  We were wondering if we ran our final numbers correctly and if anyone thinks we did okay for our first investment property.  We put in a lot of sweat equity in floors, painting, and one of the two bathrooms.  Used a contractor (recommended by BP folks!) for the two kitchens and one of the bathrooms. Thank you all for your thoughts!! :-)

Purchase Price: $167,500
Down Payment: $5,750
Loan Type: VA
Interest Rate: 2.25%
Closing Costs: $8,706
Rehab: $30,000 (we estimated $10k-$15k..oops!)
Total Rents: $1790
Total Cash in Property: $44,512
Location: Norfolk Area

First Year
NOI: $13,142
CoC Return: 12.86%
Cap Rate: 7.85%
Anticipated Cashflow (after PITA, Prop Mgmt, 5% Maint, 5% CapX, and 5% Vacancy)
$5,724

Team Bri Sean (Team B.S.)

[Chris Wheelus]

Hey Sean,

Man you landed an incredible interest rate! That alone brought up your cash flow significantly. Looks like a great deal to me, solid CoC return. I plan to house hack as well with my VA loan when my wife and I move back to the Hampton Roads area. Being stationed in the beautiful Hawaii is great, but positive cash flow is hard to come by.

Congrats on your investment!