Should I do this deal?

[Lucas Mills]

https://www.biggerpockets.com/calculators/shared/7...

The killer on this property is the flood insurance. The lowest I can get it for is $101, and that's with only insuring the loan amount as well as having the highest deductible possible. So it's really bad flood insurance at $101.

That said, the owners have said they've never had problems with water, even during heavy rainfall. They said it has come up to halfway in the backyard, but that's the worst they've ever seen it.

Anyways, what do you think about this deal? Are my expenses too conservative? I'm using 8% for vacancy, repairs, and capEx, and 10% for property management. Also, I have 8.5k in for repairs but that may be a bit too conservative. Planning on putting in new flooring in both units as well as new paint, but that's about it (right now). Planning on doing the work myself. It doesn't need a ton of work I don't think.

So, this is where I'm at. I'm looking to do a house hack but also looking to do something that will be profitable after I move out a year or so down the road and have both units rented and, hypothetically, with property management (because one day, I don't want to be managing my properties). This just barely scrapes by at a cash flow of 50 bucks per month, and the cash on cash doesn't look that great with 8.5k in repairs.

I would personally feel more comfortable at 100k. I started at 105k and we negotiated to 115k with them paying 3k in closing costs (I still have 3.5k in closing costs because I'm planning on paying PMI up front.

The property is in a fairly good area, and other investors have told me its a favorable area to be in. I know an investor that owns a duplex in the same cul-de-sac and his rent is $650/month which is what I accounted for. I think that getting $700 might be reasonable with a little bit of work and time, but I don't want to plan on getting $700/month right now.

Looking for some thoughts on this. Good deal or bad deal?