Duplex looks like a steal, Am I missing something? First property

[Account Closed]

Hello, This is my introduction post as well as my first Deal I'm thinking about buying. Basicly me and my wife are looking to househack using FHA and start generating cash flow to begin our real estate investing. I'm currently in colorado but we want to relocate to las vegas, and we found a property that shows great numbers using the BP rental property tool. We'd like to stay there and hosuehack for a year before moving on and keeping the property as a rental with property managment. Here's the numbers I cam up with.

I'm hoping for some advice on my estimates and if I'm missing anything big, Otherwise I want to call an agent and make an offer soon I think.  I estimated the rent based on rentometer.com, and guessed at a 8% capex even without any obvious repairs being neccessary.  These numbers are the cash flow assuming both units are rented, and 10% monthly property managment, for the first year however I'd be occupying one unit (the small one) and doing Managment.

Is this a really good deal? Am I way miss estimating rent? or Capex? or anything else? There asking 99K I ran these numbers assuming 90K

las vegas, nv

Monthly Income: 

$1,500.00

Monthly Expenses:

$1,242.95

Monthly Cash Flow:

$257.05

NOI

$8,600.00

Total Cash Needed

$6,150.00

Cash on Cash ROI

50.16%

Purchase Cap Rate

9.56%

Property Information

Purchase Price:

$90,000.00

Purchase Closing Costs:

$2,000.00

Estimated Repair Costs:

$1,000.00

Total Cost of Project:

$93,000.00

After Repair Value

$90,000.00

Property Description

Duplex, unit #1 3bed-1bath unit #2 2bed-1bath. No obvious repairs necessary

Down Payment:

$3,150.00

Loan Amount:

$86,850.00

Amortized Over:

30 years

Loan Interest Rate:

4.875%

Monthly P&I:

$459.62

[Ali Worthen]

Christopher Perschke , I noticed your purchase closing costs you have $2,000. I would like to offer the list of costs typically associated with cost to close so you can cross reference with yours if you'd like.

Acquisition Costs:
Upfront impound taxes and interest
(Gross loan X rate =____ / 365 X 15 days)
Insurance (2 months impound- based off the sales price)
Loan origination fee
Lender processing fee
Escrow fees
Recording fee
Credit report fee
Appraisal fee
Alta Title Insurance
Property Inspection(s)
Utility Deposits (if applicable)
Warranty (if you choose)

Operating expense:
Property mgt fee (which I see you've account for)
Repairs and maintenance
Real Estate Taxes
Replacement Reserve
Utilities
Pest Control
Accounting & Legal

I'd recommend getting with a local agent who knows the market well and can do some due diligence on your behalf prior to purchase. They can provide you with a comprehensive property report to include actual comps, property condition (if available) and market desirability. I'm aware of a couple duplex's listed in the valley at that price range. Depending on your purchase criteria the vacancy rates, crime rates and property condition vary greatly.

Hope this helps.