First Duplex Deal Analysis

[Adam Kuhn]

Looking to get any feedback on my first duplex deal.  It is not a huge cash cow but property is in great condition and in an easy to rent area and hot market. 

Purchase - $259,900, 25% down (roughly $65,000), 4.375% rate

Both units rented to long term tenants - Currently brings in $1750 but the upstairs is atleast $150 under market value so I would look to up to $1900.

Payment, Insurance, and Taxes - $1350/month.

Tenants pay all utilities

Seems like an okay deal with rents at $1750 and a solid deal at $1900.  

Any comments would be appreciated, thanks in advance. 

[Mark Douglas]

@Adam Kuhn congrats on analyzing your potential purchase!  Your analysis is a pretty good start, but there are some other expenses you'll want to consider, such as:

Lawn maintenance/snow removal, capital expenditures (major system replacements, like the water heaters, roof, hvacs/furnaces, etc) vacancies, turnover costs in between tenants, routine building maintenance, staffing (handyman?), property management (even if you're managing yourself for now, you may not want to once your empire grows to hundreds of units!), owner/manager software costs (rentec, buildium, etc), marketing costs, etc.

Some of these may not ever become your real life expenses, but if they did, you'd rest easily because you've already accounted for them, and your cash flow won't suffer  :)