1st Duplex investment #'s in Tacoma, WA!!!

[Ryan Rogers]

Hello BP,

I am excited to announce I have my 1st duplex under contract. In the last 3-4 years I have invested my money in two house hack single famiy homes. I just sold my 1st house that became a rental and got a decent size profit through appreciation over time. I am going to rent out my current primary in Tacoma, WA once I move into my owner occupancy duplex. Here are the #'s.

Duplex PP: 399,000 2 bed 1 bath 844 sq ft. .43 of acre and zoned multi family. HUGE backyards.

Money down: 59k= 15% down owner occupancy.

Closing costs: May be negotiated but we will go with 10k.

All in 69k. Fair market rents are currently 1,495 a unit. 2 bed 1bath. 2990 total income. I will live in one side. and rent out the other room. House hack my side. Renting room for $500 a month. Making $250 a month living in my own dupex!?

Locked in at a 2.625% interest rate. Also bought out the mortgage insurance W/points. Giving me a 1,753 PITI.

5% cap ex 5% vacancy 5% repairs 5% Property management. Which I will do myself. 

1 year later potential: 2990 income-600 expenses-1753piti = $637 cash flow. $318.5 each door. 637x12= 7644 annually/69000= 11% return 

What do you guys think? Nervous about this one. Looking to park my cash somewhere from my 1st home rather than it sitting in the bank. Please, any advice helps! Inspection Tuesday!!!

Ryan