Analyzing a Duplex in Wisconsin

[Jason Goslinga]

I am looking at my first duplex.  Asking price is 134K which is right in line for other duplex in the area.  2 units, 2BR/1BA each unit.  Rents for $700 each unit which is slightly below market rent which is around $750.  Tenants pay for all utilities and also mowing and snow removal.  Long term tenants.   One tenant was in upstairs apartment for 17 years and moved downstairs 2 years ago and that is when upstairs was remodeled.  New roof 2016.  New water heaters.  Slightly older furnances but working great right now

Here are my calculations - let me know if I am far off

 Monthly rent  1400

Costs 

Vacancy 5%  -                  70

Property Tax -                  258

Insurance -                       125

Maintenance 5%              70

CAPEX 5% 70

*Mortgage                          567

*Trying to stay under 125K for purchase.

30 year mortgage with 20% down @ 5.5% interest

TOTAL CASH FLOW    $239 a month or 2866 a year

25k investment so 11.4 COC return? Am I seeing everything correct?

Really well taken care of property with some long term tenants currently renting which are making me like this property.

Any thoughts?

Thanks
Jason

[Jason Bott]

Thanks @Chad Nagel

@Jason Goslinga, I'd be happy to look into options for you.

I can not tell from your comments above, but will you be living there?  If so, you could be getting Homeowner quotes, not rental dwelling quotes that everyone else is referring to. 

A Homeownes quote will tie to your personal credit and has many beneficial coverages to cover your personal beliongins, etc...But the annual cost can be more than a Rental Dwelling policy.