Duplex Due Diligence

[Dave Brinkman]

Curious to get the communities thoughts on a duplex I am currently looking at with detailed numbers below. The majority of the investment properties I have been looking at in Columbus I have struggled to get the numbers to work with a goal of 8-12% cash on cash returns. I'm curious if this is one or both of the following reasons 1) real estate as a whole has heated up and valuations are becoming less attractive 2) I'm too conservative with my repair, capex, and other estimates.

Rent - $1,020 per side * 2 = $2,040 per month

P&I - assume 4.5% 30 year with 25% down - $760 per month

Taxes - $317 per month

Insurance - $83 per month

Vacancy ($1,530 per year or $128 per month)

Prop Mgmt - I would be the landlord to start.

Repairs - $50 per month

Capex - $200 per month

Other expenses - water $42 per month

Cash investment - $50K downpayment + $10K repairs + $2.5K closing = $62.5K cash investment

I come up with 8.9% cash on cash or 7.3% cap rate.

I would classify the area as B with prices of $90 - $110 per sq ft on similar properties in the area. What are your thoughts? Thanks in advance.