First time investor about to close on duplex deal in DFW area

[Carol Kohn]

Hello,

I am about to close on a deal on a 2005 8br/4ba (4/2 on each side) duplex that I was hoping to get analyzed as this is my very first investor purchase.

Purchase Info
Square Feet (2 Units)	2,492
List Price	$189,900
Purchase Price	$171,750
Initial Cash Invested (down+cc)	$51,340

Income Analysis Monthly Annual
Net Operating Income	$1,171/mo   $14,047/yr
Cash Flow	$527/mo  $6,330/yr

Financial Metrics
Cap Rate (Purchase Price)	8.2%
Cash on Cash Return (Year 1)	12.3%

Does this seem like a decent deal? Option period just expired with the inspection popping one major problem with the HVAC that seller is fixing. Just nervous since this is my first deal and am second guessing the numbers. I am not even sure what questions to ask on here. Thoughts?

Thanks!

CK

[Carol Kohn]

@Thurman Schweitzer It has been a great learning experience for my 1st time. The price was initially negotiated to $170k, then a further reduction to $165k based on the appraisal. 

Here are the final stats (not sure if this will copy and paste correctly):

Purchase Info
Square Feet (2 Units)	2,492
Purchase Price	$165,000
Initial Cash Invested	$49,727

Income Analysis Monthly Annual
Net Operating Income	$1,032/mo $12,387/annually
Cash Flow	$414/mo  $4,973/annually

Financial Metrics
Cap Rate (Purchase Price)	7.5%
Cash on Cash Return (Year 1)	10.0%
Internal Rate of Return (Year 20)	16.9%

On the land lording side, I was forced into a crash course when I had to kick out one of the tenants due to non-payment of rent. I filed for eviction, but tenant requested a written agreement for a payment plan to pay back rents owed and a final move out date. I assumed that tenant would not stick to agreement for payments, but they did move out on the agreed date, with only minor damage to the unit (less than $1k damage. They knocked out a 12"x12" hole in the sheetrock, but could have been much worse). I now have dependable renters in that unit who pay every month on time. 

Also, both tenants pay online now, rather than driving 30 miles into the previous management company location. They are both happier about that :).

Will be looking at my second duplex this week and hopefully making an offer.