Duplex in Nashville

[Steven Gillmer]

Hello all! I need help analyzing a duplex deal in Nashville. On the surface, it seems like it should cash flow but my analysis says different. This would be my first duplex so I want to make sure my numbers are relatively accurate.

2312 sq ft, 4 bed 2 bath each side, both sides currently rented for $1,100 each. The duplex is located in an up and coming area but there is a building next door that is in pretty bad shape. List price is $230,000 and it does not appear to need much in renovation.

Estimated sale price: $220,000

Gross annual rent: $26,400

Estimated annual repairs: $1,200

Taxes: $4,100

Vacancy: $1,100

Property mgmt: $2,640

Capex: $1,200

Insurance: $1,500

P&I: $12,000

Estimated cash flow after all above $3,860

DP + c.f. = $48,000

Cash on cash return = 8% 

This just seems way too low for a duplex especially when I can buy an SFR in Memphis and get 15%.

I would really appreciate your thoughts on this deal as well as my analysis.

[Devan Mcclish]

@Amit Kal that is 100% false. As an out of state investor you can still find great deals. You can find someone local who is marketing in your target market and partner with them on the deals. Or you can send out your own marketing and have someone with boots on the ground to help you. I'm finding 1.5-2% deals in Nashville so why can't you? Being out of town, having a job, none of that is an excuse. Settling is a form of not working hard enough