Looking to close 1st deal. Should I?

[Kelly Moores]

I have an AS is contract signed to purchase a 1925 bungalow that has been converted to a duplex for a buy and hold investment. I am using my primary residence HELOC to purchase it. Inspection was done yesterday and I am waiting on official report, but my Inspector did note that the electrical system will likely need update for insurability ("educated" guess 5k for complete rewire). I would eventually like to refinance to get cash back out for future deals. I am estimating mortgage payment to be 140K @4% for 30yrs= $668.

Purchase Price $140,000

Rent $1700/month ($850 x 2)

Mortgage -$668, Vacancy 5% - $85, Management -$162, Taxes -$125, Insurance -$167, Water -$110, Maintenance -$90= -$1407

Cash Flow $293

How do these numbers look? What am I missing? I am also taking into consideration I may need to sink another 5-10K for updates which could reduce cash flow. It hardly seems worth it for $300/month, but then I look at the numbers including equity if I hold for 10yrs and makes me think it is a good place to start.

Thanks in advance for any advice, help or education.