Potential Duplex Questions

[Nick Vehr]

Hi all, 

We have recently been sending out mailers and have had a couple of bites. The most interesting came yesterday and it was for a duplex in an area where I currently have a house. Owner tells me both sides rent for 900 and the owner pays water. She currently wants to get rid of it because she lives in a different state and managing it has become hard because her tenants seem unmanageable...no problem if we buy it, we will kick them out as they are on month to months. 

Some questions I had is how do I proceed. I currently just own one property and its a SFH that rents for 900. I have the tenant pay ALL utilities, cut grass, maintain yard etc. My questions are what expenses should I account for other than grass and snow removal. I will say the numbers look "good" right now, but want to make sure im on the right page.

I feel like I'm missing something, owner wants 95k I will probably come in ~20% under whats being asked, and see what happens. Taxes, insurance, capex, property management, vacancies, grass, snow, water and mortgage have me coming in at ~366$ cashflow a month at the 95k asking price. I plan on putting each unit on its own water, and having the tenants pay that to unload some of the burden. By doing this it'll leave a little room to lower rent if I to attract a better tenant. 

Anything im missing on this, much like my first deal, it all seems too good to be true, and i want to make sure im not missing something. 

Thanks,

Nick