Duplex Question- Almost Break-even Cash Flow

[Brett Baginski]

Hello all.  There is a property that I want to look at that has been under contract and back on the market twice already, listed at $265,000.  It is in an improving area, right next to the waterfront and downtown, and great for commuting purposes near major highways.  I spent a night in the town a few weeks ago and they had a live concert outside on a Thursday.  Great community feel.

The problem I am having is when I run my numbers with my HELOC payment, I am coming up with almost break-even cash flow, slightly negative. To me this says it is not a good deal, but my question is, what happens after a refinance in 6 months and I pay back majority or all of my HELOC? Will my cash flow look a lot better at that point? Maybe my numbers are wrong, I am trying to run them conservatively.

I attached my quick analysis below.  Thanks for reading!