[Calc Review] Help me analyze this low rent Duplex deal

[Deb R.]

From what I found on rentometer.com the rent for this place might me little low so from what I have read I should reduce the offer price for the property until it cash flows? I am also unsure of my numbers, I mean the taxes should be correct since I went to the county's website but insurance, capex, repairs, etc are estimates that I have no confidence in how to estimate. If I think I will actually put a bid in then I will contact my insurance company for pricing but for now I have used the highest estimate I could find on the listing sites. For management, I put 10% but will probably end up being 9% if I understood the pricing I've seen locally. Any information in greatly appreciated, thanks.

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*This link comes directly from our calculators, based on information input by the member who posted.

[Adam Scheetz]

@Deb R.

Based on your numbers this is a terrible deal. You don't have a net return that's positive till 15 years. You're negative cash flow right out of the gate and I think 5% for vacancy, repairs, and maintenance is too low unless your hand and direction was in on the rehab to know just how 'rehabbed' it truly is. Don't do it. No deal far better than a bad one. Happy hunting.