My first duplex deal

[Cyprian B.]

Hi everyone. I'm looking for any input if my calculations are off or some numbers look too low. 

Duplex property in Columbus Ohio. 3 bed 1 bath each unit.  C class property. Built 1925.

Will be self managed. PM cost below represents online rent collection and website.  

Purchase price $76500.

25% down assume 5% rate. 

Unit 1: month to month: $500 +$100 pet rent. 

Unit 2: leased until Nov: $700.

Monthly income gross: $1300

Monthly income with vacancy (10%) : $1170

Monthly expenses 

Taxes: $97.5

Insurance: $107.83

Property management: $29

Maintenance: $65 (5%)

Capex: $130 (10%)

Landscaping: $50

Water sewage: $133

Total monthly expenses: $612 

Net operating income: $558

Cashflow: $250

Cap rate: 8.8%

Cash on cash : 13.3%

Rent to value: 1.7% (2% rule) 

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After purchase I plan to eventually change both units to $675 per month per unit. Install and use submeter for water. Water expense will now be $20 per month with an initial cost of $810 for installation/equipment/labor. New income : $1350

New expenses: $507

New Net operating income : $708

New Cashflow: $400

Cap rate:11%

Cash in cash 20.5%

Rent to value: 1.8% (2% rule) 

All comments welcome! Thank you.  

[Cyprian B.]

I wanted to add

Historical water bills (90 day periods): $450,$420,$240.

I assumed $400 average per period which leads to $133 per month. 

It's too expensive is the bottom line. That's why the switch to submeter.