Question about possible first deal on duplex

[Will Byrne]

Hi,

I'm looking to buy my first duplex and I would greatly appreciate some feedback on the numbers below.  The duplex is listed at $200,000 but I wouldn't accept anything above $175,000.  The numbers below would be if I got it at $175k.

Income:

• Total rent = $1,700/mo
• First story 2 bed/1 bath = $650/mo
• Second story 2 bed/1 bath = $650/mo
• Garage apartment = $400/mo

Expenses with 4.375% mortgage:

• 25% down payment = $43,750
• Principal & interest = $655/mo
• Property taxes = $175/mo
• Home insurance = $82

Here's a screenshot from some basic calculations.

I know that's a lot of cash to put down but I'm a conservative person and I'd like to avoid little or no down payment situations.   I know it doesn't exactly meet the 1% rule or get the $100/door rule.  Any thoughts or major concerns?  Do the numbers look correct?

Thanks in advance for your help! 

[Ralph R.]

Will Byrne Will. There's no money in your math for maintenance ( grounds keeping and things like that). Repairs are fixing things that are broken. There needs to be some funds for maintaining common areas parking etc. I didn't see any Cap ex numbers. ( long term expenditures like roofs an heaters). you can ( and maybe did get) hard numbers for taxes and insurance. Be sure to use real numbers every place you can in your math. There are calculators available on BP but you need to upgrade to use them. The rental calculator is AWSOME. Hope this helps. RR.