Looking at my first buy and hold property - MO

[Brandon Barnes]

Hi Everyone,

I'm going to check out a property here in Missouri tomorrow morning. It's a duplex in a C neighborhood. 

Asking Price is $69,000. I'll be asking for less but for analyzing, I'll stick with the $69k.

I'll put 20% down. Financing $55,200. Assuming 4% interest. 

It's currently renting at $1,000 gross. One side is section 8. The current lease is through Oct of 2016.

Taxes were $888 in 2014. I'm not sure what the insurance will be yet but I've put in a request from my agent. For now, I'll assume $1,200 a year.

I'll account for 10% monthly for vacancy and 5% for cap expenses. The property has a new roof, new floors, new HVAC, new water heaters and new windows. The seller is having health issues and is selling his properties. 

So to summarize:

Loan Amount: $55,200

Interest Rate: 4% (assumption)

Principal & Interest: $263.53

Taxes: $74/per month (2014)

Insurance: $100 (assumption)

Vacancy: $100

Cap Exp: $50

Total Expenses: $587.53

Total Rent: $1,000

Cash Flow: $412.47

Cash on Cash ROI: 35.87%

So what do you guys think? What else should I be considering? 

Thanks,

Brandon