Numbers for our first OO Duplex

[Vashti Green]

Here is the our current situation:

21 & 23 married (starting out investing young!)
Currently paying 1060 in rent 

The deal we are hoping to close on:

2 unit home:

Upper Unit - 1br, 1ba Current Rent:600, once we get new tenants, I think I can get 700 or 750

Lower Unit - 2br, 1ba Current Rent: 750. plan to occupy this unit. upon move out could probably get 1050 if I add a washer/dryer

Close to downtown, 2 blocks from VERY nice YMCA, 3 blocks from University

The numbers:

Listing Price: 149,000

Winning Bid: 152,000

Appraisal: 134,000

Final agreement: 134k + 6k seller finance (hand shake) 2 years @5%

5% down + closing costs = 12.3k out of pocket initially

Monthly expenses:

P&I + Insurance + taxes+ PMI = $991/month

sellers financing = $264/month (I'll probably pay $300 to speed things up)

$1255/ month - ($750-33% for vacancy, repairs, other stuff) = -1255 + 500 = $755 out of pocket. (1st two years)

-991 + 500 = 491 next few years

-991 + 500 + 705(67% of 1050)= 214 cash flow ($281 after PMI)

$755 Compared the $1060 I pay in rent currently, I feel like I'm making 305/month. I know I'm really not, but it feels like it. Plus I'm building equity at 23!

This is my first property. So I want some feedback!