WHAT DO YOU THINK OF THIS DUPLEX? Please check this out :)

[Johnny Manziel]

Any feedback or concerns are welcomed. I'm on here all the time reading and I finally get to post something meaningful!

First real deal and its a Duplex 2BR/1.5BA each with 2,240 sq ft total

I can probably buy for around $155K-$160K

This is in a B+ area with great neighbors/quite town.

This is a newer duplex (2012), which is basically impossible to find in my area and never on MLS. Its very nice inside and outside. This probably the nicest duplex I've ran across in my market mainly because its newer, has nice upgrades, great floor plan, well built, and its in a great town. (most multis on the market aren't in desirable locations)

I plan on living on one side and renting out the other. 

Tenet pays $875/month and is inline with the market based on quality/location. 

FHA 3.5% down payment

Mortgage, Insurance, Taxes, PMI = about $1065/month

$1065-$875=$190 month I have to pay not counting any maintenance or CAPEX savings.

This would be my second rental property. I really want to house hack and I don't want to live in a $40K duplex or triplex in the hood. I think this property will be an easy sell down the road and will still be in great shape compared to others on the market. (my market lacks duplexes on MLS bad!) I don't really think the house will appreciate much because my entire state will forever be in an economic turmoil. The appreciate factor is more possible with this one than most since its well built. Just my stance.

My expenses would be very minimal since its newer. I know i need to factor in 5% for vacancy and maybe 10% for maintenance. I would do a majority of the work myself so I don't really care. 

When I do rent it out both units the cash flow isn't very high that is a concern.

$875 x 2 = $1750/month - 10% maintenance -5% vacancy - 5% CAPEX - $1065 payment -Higher taxes since it won't be owner occupied - $100 = $235/month cash flow roughly.

Do these numbers sound right given this is newer/great location? I don't see this going unrented for longer than 2 weeks. 

All Feedback Welcomed!

[Sam Newell]

Johnny Manziel
For real?! Seems like a great deal. If you figure $1750/month once you move out then it's a 8.8% cap rate.... stupid good. For $1750/month in rents I am selling duplexes here for $270k or more. House hacking is very smart, I'd say do it for sure. I house hacked a duplex that rented for $1700/month in a c+ area, built in 1981. I paid $230k for it and was pretty happy with my investment at a 6% cap. I'm currently house hacking a sfh that I bought for $250k and will be renting it for $1700/month once I move out to my new house hack in June.
Go hurry and buy it before someone else does!!
Amy Kendall , what do you think?