Please advise me on this South Tampa Turnkey Duplex Analysis (Hot??)

[Devin Beverage]

I'm new to the game and building my foundation. Please look over my analysis and give me some feedback. I want to make sure I'm within bounds for my estimates. If you'd be so helpful as to run your own analyses and show me a thing or two, I would be indebted to you. 

http://www.loopnet.com/xNet/MainSite/Listing/Profi...

http://www.zillow.com/homedetails/6804-S-Juanita-S...

Zillow hasn't been updated with the price reduction from today. Reported NOI: $15,121, meaning claimed monthly expenses are $159/mo, which I'm assuming is property management at 11% of the rent?

Annual Rent Income (currently rented): $17,040

Property Taxes: $1852

Mortgage: $8220 (This would be assuming an FHA loan, with 3.5% down which is my goal)

Mortgage Insurance: $1200 

Property Management: $2556 (15% of rent)

Utilities (?) : $5400 calculated as $225 per unit per month, for the whole year.

Vacancy: $1704 (10%)

Total expenses = $20,932 BUT, I do not expect to have property management, and I believe utilities are tenant-paid because in one of the photos I noticed there are two different meters. This would bring me into the green by $4,064 for the year, and $338 per month. While I am still early in my learning process and have been looking for a duplex I can live in as well (whereas this one is fully rented), but this seems like such a legitimately good deal to me that I'd consider looking at buying options.

After the price reduction to $140,000 in the last few hours, the property satisfies the 1% rule. I started evaluating before the change, so it's as if they knew what I was thinking!

Please give me some pointers, destroy my analysis, or whatever you may.

[Doug Merriott]

Devin, I don't hate the numbers from a house hacking perspective, I will just say that. This would get your feet wet for a few years and get you some income down the road. Speaking of being wet you have not taken flood insurance in to account. Last time I looked at the flood map www.msc.fema.gov this area was pretty much all flood zone. You will have access to MacDill rental pool but this is not hot South Tampa. Really think this one through and drive it.