I need advice please!

[Derek Brunson]

Hello all,

My wife and I have started saving for a down payment on our first rental property.  I talked with some local investors, real estate agents, and lenders so I could have a good idea of what I need to know about the local market and what to expect for our first investment.  We are looking for duplexes in Lubbock, Texas and we are looking at a specific area in town.  We know the duplexes in this area sell for $190k-220k and we need 25% down.  We have only recently started saving and don't have the $50k-60k+ for the down payment.  Today, I learned of an off market duplex that meets our criteria and would cash flow $500-600 per month.  This seems like a good deal to us.  The only problem is we don't have the down payment.  My questions are as follows:

Is this actually a good deal? 

3/3/2 per side, $200k asking price, $215k ARV, 25% down, 4.25% (lender says probably actually a little lower), $5500 make-ready (this is an estimate, I haven't seen the property yet but I am told it won't need much more than lipstick), $8K closing costs, $1200 rent per side, 8% vacancy, 5% each for repairs and CapX, 10% property management, Taxes/insurance $410/month, cash flow $600, all utilities are paid by tenants.

Is this a good enough deal that someone might be willing to put up the down payment in exchange for half of the cash flow?

Am I getting ahead of myself trying to do this before we have the down payment? 

Is this a marginal enough deal that I should wait for something better?

Do you have any advice on something I'm missing?

Thanks in advance for any help you can give!

Derek