Tucson Duplex Numbers

[Trevor Muzzy]

Hey BP community! I’m in contract on a duplex in Tucson and want to get some feedback on the numbers I am running on the property. What do you think about area & cash flow potential, and should I consider renting units on AirBnB? Property Details: 2830 N Park Ave, Tucson about 10 mins north of downtown and the university of Arizona. Duplex with separate 400 and 500 ft^2 unIts on the same lot. The larger is currently rented for $550 and the smaller one for $500. It needs a new roof on the back unit and front roof needs repairs. The front unit is livable but could use a cosmetic update. Both small units have wall HVACs (Is that sufficient for heating/cooling?) Property Numbers: Purchase price $108.5k w/ 20% Down loan at 4.75% gives me a $453 payment for principal and interest. Reno Costs: $3500 roof + $15k cosmetic update + $4k for other improvements/buffer = ~$24k Rent: $550 and $650 after repairs and updates with 9% PM fee, 8% vacancy. Other Numbers: 1200/yr property tax, $900/yr insurance, $1200/year MX/CAPEX, $250/yr eviction/lease renewal After running numbers, I’m seeing potential to cash flow $88-$256/month depending on how much units rent for. Also seeing between 2.75% and 6% cash-on-cash year 1. What am I missing? Would you move forward on this deal? Thank you! -Trevor