Analyzing a first deal duplex with tenants in place. Suggestions?

[Wil Reichard]

Duplex. 2 bed 1 bath on both sides

My maintenance and Cap Ex is a little lower, here is why.

New metal roof, new HVAC and updated electrical. New flooring and paint. That being said, it still needs a bit of TLC to get it up to my standards.

Alright so here's the numbers...

Purchase Price: $85k

Down payment: 3% conventional $2,550

Mortgage $540

Taxes $72

Maint $70

Cap Ex $70

Insurance $80

PM (For future use) $120

Vacancy $60

Flood Insurance $90

Yes the property is in a 100 year flood zone. It's a smaller sized creek in the back yard affecting this property and the neighboring property.

Rent for each unit is easily 600 a month. Current land lord is charging 425 for one side and 500 for the other side. Very low for being in a hot area. With some fixing upping and a few thousand for remodeling. My low ball est for rent is 600 a side and a avg number is 700, still on the lower side. A 3 bed two bath is renting 1,400 down the street. Most homes are near the 1k mark with a  2 bed 1 bath. Cash flow at 600/month for both units is $106.33, and charging 700 a month is $306. All those numbers are being very conservative. Thoughts? Suggestions? Also, two tenants that are in place have a year long contact :/. Wanting to move in kinda destroys that deal. Looks like they still have 7 or so months to go.  And I cant cashflow with them locked into that lease. Any suggestions on get em out without waiting for the lease to renew? Someone suggested paying for the keys. Offering a month of rent for their new place.