possible duplex deal in Manchester, NH first time investor

[Annie Gillespie]

Hi everyone, I've been looking around on BP for awhile and considering if investing in real estate is the best move for me. All the posts and tools have been so helpful is giving me an idea of what to look for. My husband and I are both employed full time with good incomes and we're in our mid twenties. We currently own our home in Connecticut but are planning on selling in 2016 to move to New Hampshire. 

We have been looking at duplexes in Manchester, NH. We were considering buying a property now and renting both units until we move in a bit over a year then owner occupying 1 unit for several years before buying a single family for ourselves and while continuing to hold on to the property long term.  The property we are interested in is about 2 hours from our house and my husband does have a background in construction.

The property is listed at $234,000, I would hope to get is for $200-210k due to it being on the market for quite a while, it is in good shape with a newer roof, windows, furnaces etc

Based on the home being 210k:

Typical rents for area, property was prior owner occupied entire building so is vacant 

1 3 bedroom 1 bath unit $1300 1 2 bed 2 bath unit $1100 total=$2400

We would plan to put 20% down, our mortgage at 3.75% would be=$778

A quote I got for homeowners insurance was = $134/month

Vacancy = 10% = $240

Property tax = $383

Water/Sewer = $40

Maintenance = 10% $240

Management = 10 % $240 (Ourselves, but will hire people until we move to NH to owner occupy)

expenses= $2015

Monthly cash flow = $385

annual gross income = $28,800 annual expenses = $24,180 annual cash flow $3,820

cash on cash return $3820/$42000 = 9.09%

ROI $3820/$210,000 = 1.8%

I'm not sure if this will be a worthwhile investment, the main reason I am interested is that it is in a good area, the north end of Manchester. I feel like will be easier to manage, versus buying in a lower income area for a cheaper price and possibly having better cash flow. 

I would hope to rent the 2 bedroom unit on a month to month lease and then move in to it next year and hopefully just have the tenants in the 3 bedroom pay my mortgage and have minimal expenses while saving for another property. 

Does this seem like a reasonable return for a first investment or should I look elsewhere?

Thanks for any advice.

[Annie Gillespie]

thanks for the response Ann, the electric and heat are both seperate so would be paid my tenant, I just based the water/sewer off of what I pay in connecticut for my single family and doubled it.

I did forgot to factor in snow removal and lawn care, there is off street parking for a couple cars, 

Waiting my be the right option, I'm kind of up in the air as to whether that's the right decision as I'm worried property values could increase within the next year and make it more expensive to buy property,