First Potential Deal, Math Check

[Shawn Clark]

First, I want to thank all the contributors on this forum. I have spent the last year lurking and reading all of the books recommended here on the forums. I have not yet put an offer in on this property, but I am using it to create a hypothetical scenario to see if my numbers are correct.

Asking Price: $154,000
Purchase Price: $115,000
Down Payment: $23,000
Improvements: $5,000
Closing Costs: $2,300 (2%)
Total Cost: $122,300
Cash Outlay: $30,300
Interest Rate: 5.8 (built in buffer, not sure how much higher rates are for investment property)
Mort Type: 30 yr Fixed
Mort Payment: $540
Type: Duplex
Revenues
Rental Income: $1,900 ($950 x 2) Monthly, $22,800 Annual
Vacancy: -$133 Monthly, -$1596 Annual
Net Rental Income: $1,767 Monthly, $21,204 Annual

Expenses: $10,400 (46%) close to 50% rule with deduction for no property manager
Property Taxes: $2,300 (based on zillow?)
Insurance: $1000
Property Mgmt: $0 (DIY)
Maintenance & Repairs: $6,000
Advertising: $200
Utilities: $800

NOI: $10,804
Cash Flow: $4,326 Annual ($361 p/Month)
Cap Rate: 8.83
COC: 14.28%

If my math looks ok, then I have a couple of follow up questions:
1. Is it a good deal?
2. How come it doesn’t meet the 2% Rule, yet still cash flows > $100 p/Door. What assumptions does the 2% rule make that I am overlooking?
3. On REO Properties, is there any way to get Actual numbers for expenses or does it have to be estimated?

Thanks,
Shawn