First Duplex

[Dave Wigfield]

Hi BP Folks- Looking for opinions on a deal in North Carolina- thumbs up  or thumbs down, would you do this deal.... (?) 

Purchase Price $120,000 need to invest $15k rehab on 2/1, 1/1 Duplex - neighborhood rents max @$850 for comps - was rented at $600/$500 - needs work and is vacant. Nice hardwood, porch close to main street of nice town. I am calculating a fix-up time of 60 days. 1800 square feet total. I want to rent and hold for cash flow.

I have calculated a NOI of $10,400 (rent less paint, tax, ins) assuming 2 months vacancy and $700 rent per side(maybe I can get more). Taking out debt service on $135,000 (conventional 30 yr fix 25% down) I end up at $212 positive cashflow per month.

Does it hunt? Would welcome thoughts....and thank you, Dave.