Renovated 3 BR/EA Duplex

[George Smith]

After calculating cash flow(including subtracting 10% maint., lawn/snow care, Water/Sewer, HVAC Maint., 10% mngt. fee, and 8% vacancy, Insurance, and taxes) for a Duplex in a B/C rental market, Im seeing a Cash flow of 7.70%(237./mo). 

Ultimately, Im not looking to pick up more properties than I can manage but I included a mngt. fee anyway.  The rent # used in the calculation was based on 5% below the market rent(after looking on craiglist and rentometer). The current tenants(one has lease ending in Feb and one is month to month) are paying the market rent(not 5% below). Also, the both apartments were fully renovated(roof, electrical, plumbing, siding, furnaces, HW Heaters) only 3 years ago.

This duplex is also in area where most buildings were built in the early 1900's and have very small bedrooms. This one has larger bedrooms and closets.

What Im trying to look at how conservative Im being. 

1. With 10% mngt fee at 5% below market rents =7.7% cashflow

2. With 10% mngt fee at market rents = 8.9% cashflow(current rent)

1. With no mngt fee at 5% below market rents = 12.92% cashflow

2. With no mngt fee at market rents = 14.27%(current rent)

Its very tempting that thsis building has been renovatred and the cost of maintenance shouldnt be as high(although Id budget for it anyway).

Any ideas?