1st time investor in DFW currently in closing for a duplex

[Carol Kohn]

Hello,

Sorry for the spam as I posted in the wrong forum,

I am about to close on a deal on a 2005 8br/4ba (4/2 on each side) duplex that I was hoping to get analyzed as this is my very first investor purchase.

Purchase Info:

1. 1. SqFt (total): 2492
2. 2. List price: $189,900
3. 3. Purchase Price: $171,750
4. 4. Initial cash invested: (down payment +cc) $51,340

Income Analysis:

1. 1. NOI: $1,171/mo $14,047/yr
2. 2. Cash flow: $527/mo    $6,330/yr

Financial Metrics:

1. 1. Cap Rate: 8.2%
2. 2. Cash on cash return (year 1): 12.3%

Comps in the area are about $68/sqft for 3br/2 bath duplexes, and this 4/2 comes in at $68/sqft.

Rents are running $850 for other 3/2 duplexes in the area. The current renters for this property are running $830-$850.

Does this seem like a decent deal? Option period just expired with the inspection popping one major problem with the HVAC that seller is fixing. Just nervous since this is my first deal and am second guessing the numbers. I am not even sure what questions to ask on here. Thoughts?

Thanks!

CK