Los Angeles Duplex - Trying to Make the Numbers Work

[Matt Kautz]

Just getting started looking at investment properties in the very competitive Los Angeles area and found a duplex today with a highly motivated seller who needs to unload quickly.  It's a great area, units will be delivered vacant, and with some work unit rents can be increased significantly to market rates.  So, in theory it seems like it should be a great opportunity since there's plenty of room for negotiation on purchase price.

 Since this is my first property analyzed, I'm working for the first time with my cost assumptions worksheet, and no matter how much lower I go on price and higher on rent, I just can't make the numbers work.  In all likelihood it's not that great a deal (nobody hits a homer their first time at bat), but I'd love your opinion on my calculations to be sure I'm not over- or under- estimating anything.  

Screenshot below of the cash flow calculations I'm making... left side is what the offering price is, right side is with aggressive assumptions on increased rent/lowered purchase price.  As you can see, even if the purchase price were 17% lower and rents were 45% higher, cash flow is only breakeven. 

Feedback welcomed/appreciated.  Thank you!!!