Duplex Analysis

[Mitch Mitchell]

Hey everyone!

So I am about to pull the trigger on buying this property but the numbers that I am looking at put me on the fence of good deal / just an OK deal. The property is an up and down duplex. 2600 sq ft. 2 bed 1 bath in both units. The top unit is rented for $500 a month and we plan on living in the bottom unit. We are financing through FHA with 3.5%-5% down. Hypothetically, if both top and bottom units were being rented, we could get $1100 a month in rental income. We want to live in it for 5 years or so, refinance, move out, and rent both units out.

Here are the numbers:

Purchase price: 79,000

P&I: 350 per month

Taxes: 100 per month

Insurance: 30 per month

PMI: 50 per month

Management: 0 per month (I will manage)

Trash and Sewer: 50 per month

Separate gas and water lines

Vacancy: 8% (College town so it is easy to rent)

How would you rate this deal based off of these numbers? And looking at the property down the road when we refinance and rent out both units at $1100? Thank you all!