Duplex Analysis --- Seeking opinions!

[Andy Hudgins]

Greetings all! If you would scrutinize this duplex opportunity I would be very grateful.  I am writing the earnest money check this weekend. Please let me know if other numbers are needed. Thank you very much!

28 Ivy Street, Porterdale, GA 30014

Legal duplex, built in 1918, separately metered, one side currently occupied @$480, month-to-month. Other side vacant, in need of interior paint, water heater, cabinets in situ to be prepped, painted and hung, heart pine floors to be sanded and poly-ed. Most work to be done by me and crew. Electric has been upgraded but will receive a proper inspection. There is no HVAC --- no heat source! Researching ductless, split mini heat pump, one for each side. Current LL requires tenant to provide their own window rattler. All utilities paid by tenant. Exterior in need of a lot of work--- paint, siding repair, porch railing, landscaping, etc.

Goal: Force appreciation up then delayed financing.

Comps; mill town with many identical models. Sales within last 24 months at $21/sq ft. This one is $22.

(I could not get my spreadsheet to copy and paste to BP)

Revenue:

$480 current (will shoot for $600 for other side. WILL have repairs complete in less than one month, begin tenant screening)

Vacancy 10% $108

Projected gross annual revenue = $11,664

Property taxes $446

Insurance $500

Management 7% =$725 annual

Maintenance 10% = $1166

Advertising $100

Sales price = $35000

Down payment = $7000

$500 earnest money

Owner Finance 5% Simple Interest, 10 years, no penalty for early payoff

Monthly payment $245

Closing costs = $1500