Looking to make first purchase, feedback on this deal appreciated

[Will K]

So I am new to REI, have probably spent about 2-3 months browsing various online forums and searching Redfin, Zillow, etc. trying to get a feel for prices in some areas. I have around $50k cash to start out, and plan to focus on multi-units.

I live in DC, and if anyone has any idea of what real estate is like in DC then you know it’s pretty hopeless, especially for someone starting out with small cash reserves.

I found a 1930s 2 unit duplex about a 2 hour drive from me. It has two 2BR/1BA units, separately metered, with no HOA. I think in this area I could get about $900/mo per unit, which puts the 2% rule value at $90k. The house is listed at close to $80k, but I am planning on making a $75k or maybe even $70k offer.

Using my own spreadsheet model, I came up with some figures. Assuming I put 20% down on a $75k purchase price, $1,500 annual maintenance (due to the old age of the house, I estimated 2% of the house's worth in annual maintenance rather than the typical 1%), a 75% occupancy rate, and $1,800/mo in rent, I am expecting about a ~$580 monthly cash flow, or $7k annually (post tax). This would give me a 47% annual return on a $14,000 (my down payment) investment. As a sidenote, the 50% rule gives me an NOI of $900, so I feel as though my spreadsheet model is erring on the conservative side.

The only catch is the house was built in 1930, and there are no pictures of the inside, only the outside. I have yet to contact the realtor, but wanted to get some insight as to what the board thinks of my numbers and especially how they feel about buying a place that is a 2 hour drive. If I moved from the area I would consider a property manager, but right now I feel like monthly drives to the house for peek-ins would be manageable. I am sure when I am filling it with new tenants it would be weekly drives, but that would (hopefully) only be temporary. Also any tips for finding a good handyman in a town I have no contacts in would be helpful. Is craigslist a good resource for this, or has anyone tried Angie’s list?

Thanks!