Seeking Advice: Recovering from analysis paralysis ( Working First Deal on a duplex )

[Chad Huffer]

Hey guys,

I'm working on my first deal and would appreciate any advice.  

I've got good credit currently 793 credit score and a total of about $119,000 in debt.  I also have a good annual income between my full time job and other sources of income, however, I don't have access to liquid capital at the moment and need to move fast to make an offer.

I'm looking at doing a hard money / REFI for the purchase and rehab to get them purchased and finished.

The property is a duplex that was foreclosed on after being dried in.  A small developer lost the whole subdivision after partially completing it.   All the interior framing is in place with rough electrical, HVAC and plumbing.  I've had 2 contractors check it out to provide estimates to complete the interiors (still waiting on those numbers but my agent is estimating 30K).  There are 2 adjoining units and 1 unit that is attached to a currently occupied unit.

I've had  a rental property in the area for the past 11 years and my property manager was saying they can't keep enough rentals, so I don't foresee any problems with keeping it rented.  

I believe this deal makes sense as either a flip or a buy and hold but I think I prefer to buy and hold initially.  I would like to build up a good base of passive income before beginning to flip properties.

Each Side is:

• 1575 sqft
• 3 bedroom
• 2 bath
• 1 car garage
• Projected rent is $1150.00/mo

Below is the numbers I've put together so far... Does this look right?  And more importantly do you agree that the deal makes sense?

Here are the number per unit:

• Vacancy rate:    4%
• Purchase:          $35,000
• Repair:              $35,000
• Mortgage:         $385
• ARV: $120,000
• ROI: 41.67%
• NOI: 8,286
• CAP Rate: 11.84%