Confused first time rental property (duplex) buyer.

[April Causapin]

Found a duplex with two (1 bedroom, 1bath) BUILT IN 1929. Currently has tenants paying $1000 each. Need to update to increase rent to possibly 1200- 1600 (on the high end). I'm alloting 10k each unit. Each unit is 580sqft. It's about 30 minutes from Los Angeles, in a B class neighborhood. Asking price is $500k, I'm putting 10% down and paying out the PMI of 3.5k just because I want to have cash. I'm planning to live in one and rent the other. Mortgage with insurance and taxes is 2.5k. Other expenses as landlord would be additional $100 repairs, $100cap expense, $150 water, trash, sewage, $100 Property manager. So extra $450. Not including utilities such as gas, electricity and internet which I'm assuming is another $300. Is this a good buy? I'm planning to live in it for the next 2-5 years then probably make it a rental property and buy and hold.

it discourages me to buy because I am no where close to getting the 8-12% cap rate. But these are basically my only options in the area I want to live in which is close to my parents and middle of my jobs. 

Let me know what you think? I’m new to real estate and investing. First property to purchase.

[Nathan Gesner]

Without even putting pen to paper, it doesn't make sense. Even after collecting $1,600 rent income, you still have enough in expenses that this is going to cost you as much - or more - than if you were just paying to rent a comparable home. If you get one month of vacancy, you lose. If you get a bad tenant that causes $10,000 in damages, you lose big time. If you get a renter that stops  paying rent because of the rent moratorium, you lose bigly.

Investments should pay for themselves. This one doesn't do that. You're only hope for success is if the market continues to appreicate and the property gains value. I wouldn't put my eggs in that basket.