Critique my Duplex House Hack

[Michael Henry]

Hi Guys - looking for feedback on things I could've done better, where I could've saved money and or tips / advice on this deal so I can better prepare myself for my next house hack when I move out of this Duplex.

The Deal:

Live In Duplex

- 3bd/2bt 1250 sq ft + 1 car garage per side built in 2008

- Rents $1050 Side A / $1100 Side B

- Purchase Price $280,000

-5% Down Payment ($14,000)

-Purchased already rented, one side to be vacated at closing for me to move in

Mistake I made looking back is the comps I was looking at a brand new duplex listed for $350,000 and a duplex more updated but built in the same year also listed for $350,000 were not truly comps as these duplex are still for sale to this day. Appraisal came in at $280,000 much lower than I thought. But the GRM (Gross Rent Multiplier is 130.5) $2150 x 130.5 = value $280,575

Similar Updated properties are rented for $1300-1400. The unit I was moving into was not livable (to my standards) so I did a light renovation which is detailed below. After renovation I'm estimating I can rent my side for a conservative $1350, side B ill increase rent to $1250 in 2020. It is in much better shape and already rent ready. This should give me a value of $339,300 (130.5 x 2600)

Mortgage including PITI = $1800

Estimated rent = $2600

Property management = $260

Vacancy / maintenance = $260

Net profits = $280

Down payment = $14,000

Rehab = $16,000

Cash on cash return = approx 11%

Equity = $59,000