First deal potential, thoughts?

[Nathan Nelsen]

I’ve been sitting on the sidelines waiting and searching for a deal and I think I might have found. To give a little information it’s a duplex, each side is one bed-one bath, completely remodeled in 2016 with new kitchens bathrooms, oak hardwoods. Newer roof, electrical, vinyl windows, and doors. Current owner says both sides rent for $1100 a month, and based on that area it seems about right. My idea would to househack for a year or two then keep this as a rental. One unit already has a tenant. I’m currently rent and am sick of throwing money away every month. This is a nice neighborhood in metro-Detroit. No garage and current rental cert. with city.

Here is my analysis:

Purchase Price: $219,000

Taxes: $2160 per year ($180 monthly)

Insurance: $996 ($83 monthly)

Capex: 7% ($154 monthly)

Management Fees: $0

Electricity: $100 Monthly (Tennant will pay own electric and gas)

Gas: $50

Water Sewer: $25 Monthly

Repairs & Maintenance: 5% ($110 Monthly

Vacancy: 3% ($66 monthly, hot area in Metro-Detroit)

Monthly gross income: $2200

Down Payment 5%: $11,000

Estimated Closing Cost: $4300

Total Down: $15,300

30 Year Term @ 3.4%

Once I move out I estimate the monthly cashflow with be $519 per month possibly more without utilities cost. I calculated the expenses to be $1680 monthly and cashflow to be $2200.

My CoC ROI is 40.87%

Proforma Cap is $7.90

NOI is $17,304

Any thoughts or feedback would be appreciate, this is my first deal analysis post so I’m sure I’m missing a few things.