Analyzing 1st investment - Los Angeles Duplex

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Hi all,

New member here.I’ve been learning about and following the real estate industry for over three years now and am trying to get my feet wet.Currently have an offer out on the following property – plan to buy and hold for 3-5 years, and do considerable renovations during that time.The numbers seem promising to me, but I would like to hear your opinions!

Details:

Property type: Duplex in high rental demand area in Los Angeles Price: $530k Up front investment: $80k down payment + $20k renovations Rental income: $3800 / month* P&I, Tax, Insurance, Trash/Water/Sewer: $3050 / month Vacancy Rate 2% ($75) Repairs 5% (~$200) Property Management 6% ($230) (already verified rate with company)

Net operating income: ~$250

*Note that I would be living in one of the units.That unit would go for $1600 if I were renting it out.Since I will be living there, I only want property management services for the other unit, reducing PM fee to $130.Likewise, I don’t see why repairs on the other unit would exceed an average of $100/month.That brings net income to $450 monthly.A little fuzzy since I’d be paying half of the “rent” for my unit but to make the point…

To put it another way, living in one of the units and renting out a room, the rent from that room plus the rent from the other unit cover P&I plus trash/water/sewer completely.So I would go from paying rent north of $1k per month currently to ~$500 per month to cover property management fees and maintenance.Depending on the state of the market, I plan to sell within 5 years or hold and purchase / move into a second property?

How does this sound for a first time investment?Good, low-risk starter opportunity or do I have rose-colored glasses on?