Help analyzing my first MFH rental purchase

[James Wierzba]

Hi All,

Long time listener and lurker, finally about to pull the trigger and make an offer on my first property (a duplex in a semi-rural town in the pacific northwest).

Numbers:

• Mortgage: $570 (with 20% down, $28,000)
• Insurance: $75
• Taxes: $110
• Maintenance budget:  $200
• Property management: $165
• Utilities (owner is paying currently): $185 -- note: I plan to change this at lease renewal
• Total expenses: $1,305
• Rental income (minus 5% vacancy estimate): $1,560
• Cash flow: $1,560 - $1,305 = $255

Info:

Duplex (2x 2bed+1bath)

It had quite a few renovations done. The seller is a wholesaler who bought it from someone who could not afford the repairs.  All new appliances. Roof is less than 5 years old. Both units are occupied, and are supposedly good tenants that pay rent on time. No pets or smoking.

Concerns:

• Age of property: 1893 -- should I be worried about this? Why would the age be a concern if everything about the property is in order?
• The rents are quite a bit higher than surround 2bed+1bath units, however the units are in better condition.