Is this duplex is a good deal or not.

[Daniel T]

Hey everybody. I am new to the community and REI. There is a wealth of information here and some very knowledgable people, so I am looking for some advice on a potential deal.

I will be financing it with an FHA loan, 30 years, fixed rate, between 3.5% - 4%.

Purchase Price: $160,000
Percent Down: 3.5% ($5,600)
Loan Principal: $154,400
Asked seller to contribute $8k towards closing costs.

Currently both units are vacant, but I will be living on one side while renting out the other. I plan on living there for a year and then purchasing another investment property ~1 year later.

month/year

Rent: $1,900/$22,800 (Broke said I could ~$900/$950 for each side)
Less Vacancy (5%): $95/$1,140
EGI: $1,805/$$21,660

Taxes: $291/$3,488
Mortgage Insurance: $161/$1,930
Hazard Insurance: $193/$2,316
Maintenance: $100/$1,200
Utilities: tenant pays

Total Operating Expenses: $745/$8,934

NOI: $1,061/$12,726

Less Debt Service: $719/$8,633

Cash Flow: $341/$4,093

Cash on Cash Return: 6%/73%

Price Per Sq/Ft: $76.48
Cap Rate: 7.95%
DSCR: 1.47

I would like a larger return on the monthly cash flow, but it is in a nice location. This duplex (2/1.5) is in a prime location, great area, right next to major roadways and shopping. Has fairly new appliances that are in good condition, new carpet in the bedrooms. Doesn't need any major work, just some landscaping, some paining, a few small things need to be replaced. Some people in the same zip are paying $1100/$1200 for a similar place. I figure once I do some work and fix things up I can charge more down the road.

Is this deal worth it or If I am missing something in my calculations. There are a lot more knowledgeable people here than I with a lot more experience. I would really appreciate any feedback that might steer me in the right direction. I want to have a successful career in real estate, but don't want to blunder my first deal.

Thanks