Duplex Purchase

[Eric Phillips]

I am looking for some inputs. I am looking at my first duplex. The details are below. I would love any comments, questions, or concerns.

Purchase Price: $135,000

Owner Financing

Down: $18,500

Interest: 1.58%

Term: 3 years

Payment: $750

Closing Costs: $2,500

Rents: $1,200 (2 - 2bd 1bath units; $600 each)

Taxes: $1,500 Annually

Insurance: $780 Annually

Management: $1,152 Annually

Utilities: $1,000 Annually

Maintenance and Vacancy reserves would be lower than 12% during the seller financing stage. Then I would need to refinance and know that in three years the mortgage industry could be different, and there are risks that property values decrease. I have a trusted contractor going to look at the home today.