First Duplex "Deal"

[Cowan Bucks]

Hello Everyone!

I'm looking for my first deal. I really want to get this show on the road but I'm having trouble getting the numbers to work. ( Property taxes are too high! ) I know this isn't a great "deal", but do you all think it could work?

Deal Analysis: 

Unit 1- 1bd/1bath : $795

Unit 2- 1bd/2bath: $850

Combined Rents : $1645

Asking Price: $140,000

PITI: $935

Monthly owner paid expenses: $430

Total Fixed Expenses : $1365

The difference between those 2 numbers is $280. Thats leaves me with $280 a month to cover vacancy, cap ex , and repairs. The unit seems to be very well maintained with new roof and heating system. It is also in a great area. 

I also would like to say, initially I will be occupying one of the units. I'm basically trying to house hack but I want the numbers to work if i move out so i can hold on to the house.

Any thoughts or words of advice will be greatly appreciated. 

Thanks!

[Simon Shih]

Based on @Brandon Turner's rule of 100 dollars a door, you are fine. Personally, I'd prefer about 200 a door or more to give me a buffer if anything comes up. 

What's the actual house worth? Or is 140K the retail rate for the area you are in? Can you get a reassessment of the property and have the taxes reduced? Can you put more money down and reduce your PITI?