first duplex deal looking for feed back...

[Gustavo AL]

To all my land lords, I would like a little feed back on these numbers. I am really looking for a second/ third or multiple options ... my numbers work for me, just curious to see what my fellow BP followers think about this deal...Do keep in mind that this is Miami market.  

174,000 purchase price

35,000 down payment 20%

139,000 loan amount

5,500 closing cost

2,700 yearly taxes 

2,000 yearly insurance 

2,400 monthly rent (1200 per unit)

1,050 mortgage,tax,& insurance 

1,350 Cash Flow

I know plus 10% to 20% set aside for maintenance and vacancy    

Repair cost are minimal, another investment company purchased this property a couple of month ago and did a good job in getting the duplex ready for rent. No other property in the area is listed at this price. Here is a little back ground on the property area, location is near A plus schools and is in a great location in South Miami. Comps are in the 250,000 range. I have two option/strategies for this property.  One is I hold it for a year or so and happily collect rent and then sell it in the 250 range or two, I pull the equity out in a couple of month and continue to flip or buy another duplex/fourplex...

[Frank Gucciardo]

Originally posted by @Gustavo AL:

i think so too, @scott nipp but how are you still getting 600 cash flow a month. if all my expenses, i.e.. mortgage,tax,insurance,(20% for vacancy)  of 2400 rent i still get 870 cash flow???

were is in math wrong??? 

 I always account for vacancy at 10% to be conservative.  You have to figure that you will have at least one month of vacancy per year.  I also account for pm whether I'm going to do it or not.  This will allow me to switch to a pm down the road when I want to sip drinks on the beach :-)