Deal Analysis

[John Aloisi]

Looking at buying our first rental. Here's a duplex we're looking at. What do you think? Is this a good deal or should we keep looking?

Purchase price = $75k

Financing= HELOC for full amount at 3% = about $300/mo

Duplex currently rented at $1,300/mo total. Tenants pay all utilities. Both units currently rented. We plan to self-manage.

Property tax = $2,500/yr

Insurance = $1,000/yr

Maintenance = $100/mo

Cash Flow = about $600/mo