Duplex in Buffalo NY

[Connor Smith]

I think that I have found a good deal on a property, but as this would be my first deal I wanted to run the numbers by some more experienced investors.

House is a 2 unit - 3bed/1bath per unit. Interior of house is ready to be rented but it does need a new roof and the second floor porch may need some boards replaced. I would live in one of the units with my current roommate. Rents are approx. 700-800/month for each unit.

70,000 purchase price

14,000 down payment (20%)

56,000 loan (30 years at 4.5%) - 280/month

10,000 repairs (I am estimating this as the max I would spend on repairs for the roof)

4,000 closing costs

1,450 yearly taxes

1,000 yearly insurance

24,000 total cash investment

1,400/month rental income (700- per apartment)

485/month (mortage, insurance, taxes)

915/month cash flow

12% COC Return

Ideally I would like to live in one unit with my roommate and rent the other unit out. From what I have calculated with 1,050/month coming in for rent, this should not be a problem. And appears to provide a pretty decent return on my money if I were to rent it out.