How are my numbers Duplex

[Andrae Raymond]

I am considering entering a contract for a duplex that I found though Trulia. This would be my first investment property and my strategy is to buy and hold. Does this sound like a good deal?

Purchase price: 105,000

Down payment: 25% ( 26,250)

Interest Rate: 4.7%

Tax $1,764

Maint and repairs $1,500 (estimated, owner said it's closer to $1,000)

Renters pay all utilities and take care of grass.

I'll be self managing it

Both units are 2br/1ba. Rents are 620 + 635 = 1255

Vacancy 6% ( $-75) (Both units are section 8 and are rented now)

One tenant has been there 3 years, and other 8 years. I plan to leave the tenants there.

Isurance? not sure I used 850

NOI - $836

Cash flow - $428

Both units have already been inspected by section 8 this year, so I don't anticipate many repairs.

What are your thoughts?

Also what things should I look out for?

Thanks for reading!

[Julie Haveman]

Asking price was 125K

Contracted for 110K

Down payment was 25%

Taxes around 2K

Insurance 600/year

We also self manage, 2 beds/1 bath each side. We are raising rents to $700/side.

The rents have not been raised since tenants moved in between 5 and 6 years ago.

I think you have good cash flow, just keep an emergency fund in case anything bigger crops up like roof or furnace.