Duplex analysis critique (house hacking in Seattle)

[Chester Knapp]

I am considering a purchase of a duplex as an owner occupier in a central Seattle neighborhood (limited by a commute to Redmond). I am a newbie, and would like a few more experienced eyes to look over the numbers and point out if I've missed something, whether the estimates are too conservative, or just conservative enough.

Here are the numbers:

• List Price: $605,000
• LTV: 85%
• Est. interest rate: 4%

• Upper Unit (2bd, 1ba, 1040sqft) $1,850
• Lower Unit (2bd, 1ba, 970sqft) $1,330
• Total income: $3,180

• Vacancy (@5%): $160
• Taxes: $345   (From county assessor)
• Insurance: $95  (Estimated)
• Maint (@1%): $500  (May be high, however house was build in 1901)
• Water/Sewer/Garb.: $150
• Total Expenses: $1250

• NOI: $1,930
• CAP: 3.9%
• Rent Multiplier: 16

• P&I: $2,435
• Cash flow: -$505

I estimate the rent's are low by about $200 to $300 in total - the lower unit seems particularly under-priced.  Offering and getting the property at ~$560k (possible, if unlikely), combined with getting rents up to market value, gets it extremely close to cash flow neutral (which looks like a lofty goal in Seattle - this 'deal' is par for the course for the other 5 recent sales I've analyzed in a similar way).

• Anything seem glaringly out of place with the numbers? (maint. seems high to me)
• Anything else that would be worth taking into consideration?
• Is this "deal" mediocre enough to wait for something better?
• Is looking for cash flow in Seattle a fools errand?