Analyzing a rented duplex

[Michael Davido]

This is a deal that the BP calculator seems to make work.  It would be my first investment property.  It is about 1 hour and 15 minutes from where I live.

Purchase Price:  $139,900

Closing Costs:  $6,300 (I went with 4.5% here but I don't know the exact number)

Interest Rate:  4.5% (Estimating)

Term: 30 years

Loan Amount: $104,925 (25% - I checked my local bank and they told me they required 25%, but I will shop around)

Rental Income Total:  $1,650 (Based on BP Insights, rents are on the low end and could probably be increased)

Property Taxes:  $3,880

Insurance:  $1,000/yr (Overestimating.  I don't know.  Zillow says it is about $600 per year)

Repairs:  5%

Vacancy:  5%

CapEx: 5%

Property Management:  10% (I figured I'd go toward the high end)

No money set aside for things like electricity, garbage, etc.  I would need to look into that.  There is a picture showing two hot water tanks but that probably doesn't mean anything.

Total Cash Needed:  $41,275

Cashflow:  $299/month

CoC ROI: 8.72%

I think my estimates are on the high end.  If anything, I'd try to come down off the asking price.  Am I missing anything?  I'm going strictly off of what is taught in the webinars and other BP videos.

Thanks!