Duplex in Ridgefield, NJ - Good Deal?

[Harri Son]

Hi all,

Hoping an expert on here can provide valuable feedback and advice on a potential investment property purchase. A friend of mine and I are considering purchasing a duplex in Ridgefield, NJ with the following numbers:

Home	Address	BOA
Elementary School Rating	n/a
Max Offer Price ($)	$465,000.00
Renovation Budget ($)	$-
After Repair Value ($)	$-
Closing Costs (%)	3.50%
Closing Costs ($)	$16,275.00
Total Upfront Cost ($)	$36,075.00
Loan	Purchase Price ($)	$495,000.00
Down Payment (%)	4%
Loan Points (%)	0.00%
Amortized Over (years)	30
Loan Interest Rate (%)	3.85%
Down Payment ($)	$19,800.00
Loan Amount ($)	$475,200.00
Loan Points ($)	$-
Monthly Mortgage Payment ($)	$2,227.78
Monthly Misc (HOA, Garbage, etc) ($)	$-
Total Monthly Due ($)	$2,227.78
Rental	Monthly Income ($)	$4,000.00
Annual Property Taxes ($)	$7,000.00
Insurance ($)	$1,584.00
Vacancy (%)	5%
Cap Ex (major repairs) (%)	5%
Minor Repairs/Upkeep (%)	5%
Property Management (%)	0%
ROI	Annual Rent/Purchase Price (%)	10.32%
Cash on Cash ROI (COCR) (%)	4.55%
Purchase Cap Rate (%)	6.10%
Annual Net Operating Income (NOI) ($)	$28,376.00
Annual CashFlow ($)	$1,642.68
Monthly Cash Flow ($)	$136.89

I would use the BOA Affordable Loan option to purchase the property with only 4% down. The program allows a low down payment with no PMI. The house is listed as 495k on a main boulevard in the town. The property would come with existing tenants with a one year lease for 2200 a month (4 BR/2Bath) which we think is too low. We also intend to airbnb out the finished basement and top floor when I am out of town for work (majority of the time) to hit our target 4000 rental income per month. Does this look reasonable?