Duplex Due Dilligence in TX

[Tony Karns]

I am looking to buy a duplex in NE TX area in the next few months, due to work relocation. I would like to live almost rent free. I have done some of the preliminaries on this property, but it appears to me that I would still be in the red . I am not sure what I am doing wrong and would like to get some advice and also have a second set of eyes on the numbers. I am also using a VA Home Loan. Is there stuff that I am missing?

Deal Analysis

Duplex 4bed/2ba

Sqft 1792 each side

Current rent $1,142.00

Market Rent 1700-1900

Projected Collected Rent (both sides) $3,400.00 -3900

The Mortgage $1,613.00

Mortgage insurance (PMI or MIP) n/a

Property Taxes $371.42

Property Hazard Insurance n/a

Initial Investment $0.00 $ 50,000.00

General Maintenance Upkeep ?

Landscaping $30.00

Water 100

Repairs $170.00 or 5%

New Appliances n/a

Capital Expenditures $340.00 or 10%

City Taxes n/a

Property Management $170.00 or 5%

Vacancy Rate $272.00 or 8%

Total Expenditures $2,936.42

Difference $463.58