Would you do this deal?

[Kevin Rollins]

This property is a duplex in a college area with good rental history (not college kids)

Purchase price $125,000

Rent $1850

Electricity $25

Water/Sewer $100

Insurance$100

Heating $150

Vacancy (5%) $92.50

Maintenance (5%) $92.50

CapEx (5%) $92.50

Prop. Management (10%) $185

Mortgage Payment $496.13

Taxes $280.83

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Income $1850 - Expenses $1614.47 = $235.53 cash flow

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Total cash needed $37,645

Cash on Cash = 7.51%

Cap Rate = 7.02