First investment/rental property

[Steve Kadi]

Investment property details:

Each unit: $190k (Duplex)

Property tax: 2.42% 

Rental: $1550 ( Current tenant will extend lease for new buyer)

HOA: $290

Home Insurance : $600 per year.

Built:1958 (Interior renovated last  year)
If the numbers add up , I plan to get it inspected etc.

Do you all think it’s a good First investment property to go for? Am I missing anything?

Thank you for your time.

[James R Crady III]

So, if I understand correctly this is $190k for 1 unit. That you project will realize $1550.00 / month in rent. 
 
if that is accurate, I personally would not be interested in this deal. Several reasons:

-CAPEX - does not appear to be in your analysis. House built in 1958, no issue. But a house that old is likely to need something over your 10 year horizon. Roof, floors, mechanical, etc... Numbers on your deal have a pretty narrow margin for positive cash-flow dependent upon rate and term of mortgage. CAPEX may chew it up.

- Cash on Cash return will likely be very low. Same as above, dependent on loan details and CAPEX requirements. Appears CoC likely we'll below 5% annually.

-HOA - I tend to avoid them in general.

Now, if you think the market is going to sky-rocket and just want to break even every year until you can realize some great appreciation in 10 it might be a winner.

These questions are really difficult since there are so many variables and personal motivations and objectives.