Please help analyse deal on first property. Contract for deed.

[Rhodaline Dekyi-Arthur]

Here's a deal that i am looking at doing, Please go over the numbers , feel free to point out anything that i might be overlooking.

Property is a duplex located in a lower income neighborhood. Its not a war zone though. Tenants already in place, both have been there for over two years and keep the place in good condition.

Seller is offering a contract to deed option @6%

Asking price is 135,000.

Down payment is 15000

Rents- 1600

Mortgage 6% assuming 30 yrs- 720

vacancy 8%- 122

Maintenance 10%- 153

Taxes- 200

Insurance- 92

water, trash, sewer- 104

Management- 70

Net income= 139/month

I do realize that these numbers are low. I am looking at making an offer for 125,000. This will bring the cash flow closer to 199/month

I will be doing my own property management.There is also the possibility to put in a third unit which will increase the rent by 500/month.

Would you do this deal?

Thanks in advance