Help with deal analysis-duplex near Rome GA

[Robert E Bogino]

Hey guys I,m running numbers on my first deal and would like to make sure I;m not missing something.

Duplex is actually located in Lindale GA. Both 1 bedroom, 2 levels. Owner says its has been remolded with new wiring, AC and heat, paint, and kitchens.  No mention of roof. Its says both sides are currently renting for $550 each. I think I can get it between 70-75k.

Pros- numbers all seem to look good and be above the %1 rule of thumb.

Cons- Looking around the area there is not a whole lot of rent data on the immediate area. Some comparable places are higher, some are lower. The 550 seems a little high to me.  Property manager says it seems right. I'm also concerned with finding tenatnts in a more rural area and quality of tenants.

On to the numbers

Taxes and insurance- 149

Vacancy -110 (I estimate %10)

Repairs and Cap ex- 200

Property Managment-66 (will be 6% since realtor and management are same)

Mortgage- 304

1100-826x12=3288 annual cash flow

Cash on cash return

Down payment-15000

closing cost-1500

rehab budget 10000 (It says its renovated, but I want to be safe and budget this in)

Total investment 26500

3288/26500x100=12.40%

Anyone have any thoughts on the area?