Duplex analysis

[Jonathan Perez]

What do you guys think? Am I missing anything? Duplex, both sides vacant. Each side has 2bedrooms and 1.5 bath. Excellent location, about 5 minutes from downtown. It is on a main road. Both sides completely rehabbed. Brand new appliances, countertops cabinets and hardwood floors. Roof was done as well as HVAC plumbing and electric. NOTE: I plan on house hacking. Asking price $175,000 According to comps rent would be about $800-850 Possibly $900 Total gross income $1600 Vacancy allowance $80 The mortgage including insurance and tax at that purchase price is estimated at $1030 Maintenance and repairs $120 Cap ex $160 Property management $160 Let me know if my numbers sound right or if I might've calculated too high or too low or what.

[Tim Johnson]

Your vacancy seems low -- it calculates to only 18 days of missed rent per year. Are you sure you can keep the place occupied and with tenants who pay their rent, 95% of the time?

Other expenses seem reasonable... but after subtracting all the expenses, you would only cash flow $50 / month or $600 / year. Is that acceptable for you? Personally I would not take the deal with those numbers. It would look better if you could charge $900 / month or more instead of $800/month.

*take all this with a grain of salt, I am a newbie