Duplex Cash Flow Analysis

[Shawn Reisner]

Hey guys!  I think I found a good candidate for my first investment property, but I wanted some feedback and what you think of my numbers.

The property is a duplex where each unit is a 1BR/1BA.  The total monthly rental income is $1,230 ($585 + $645).

I'm told the roof will need to be replaced in 3 - 5 years and the deck will need to be replaced within 2 years.  The property seems like it's in good shape otherwise.  Also, the property is in an okay neighborhood.

Values with squigglies are estimated.

Asking Price:  $94,500

Closing Costs:  ~$2,500

Rehab:  ~$500

Down Payment:  20% ($18,900)

Prepaid taxes, insurance, and interest:  ~$1,000 (not sure how to estimate this so this is just a guess)

Initial Investment:  $22,900

Mortgage Remainder:  $75,600

Mortgage Interest Rate:  ~4.5%

Mortgage Period:  30 years

Monthly Payment:  $383.05

Monthly Costs

Property Taxes:  $167

Insurance:  $50

Utilities:  $0

Lawn Care/Snow Removal:  ~$50

CapEx:  $100

Vacancy (5%):  $61.50

Repairs (5%):  $61.50

Management (10%):  $123

Total:  $996.05

Total Monthly Rent:  $1,230

Cash on Cash ROI:  12.3%

Do my assumptions seem reasonable?