Ready to pull trigger on first deal- would appreciate feedback

[Steve Kim]

Hi BP!

I currently have one rental property (primary residence turned rental) and this will be my true investment property purchase and wanted to make sure I'm on the right track.

Anyway, my agent who is also a builder/investor is selling his 3 years old duplex (1450 sq ft, 3bd/2ba per unit) , built ground up with all new/relatively high end amenities (tiled bath, quartz tops, custom kitchen, laminate everywhere). 
This is in north Texas so cash flow is typically weaker than other regions. 

Here are the numbers:

Purchase price: $300K
Closing: $5K
Down (20%): $60K
Rental Income: $1250 per unit ($2500 total)/ mo

Monthly Expenses:
Management: $250
Maintenance/CAPEX: $250
Vacancy:$125
Insurance:$100
Tax: $400
Total: $1125

Debt Service: $1030

Monthly Cash Flow: $345
NOI: $16,500
Cash on Cash: 6.4%
CAP: 5.5%

There are no comps for a new duplex so I've analyzed a few single family homes with similar square footage (1300 to 1600 sq ft range) and most of them perform at around same or slightly lower CAP and CoC rates.

I know the numbers aren't too strong but I believe that I can consistently get high quality tenants and can easily utilize one of the units as a short term rental because of the nice finishes.  Also this is the perfect house hack duplex for other buyers in the future (My wife refuses to house hack so no go for me)

Any input/feedback would be greatly appreciated!

[Joe Villeneuve]

Here's what you have.  A property that cash flow $4140/year and a cost to you of $65k (DP = C.C.).  That means it will take you 15 and a half years, assuming no problems that add more out of pocket costs to you, before you recover your cash...and start making a profit.  That's a looooong time to break even.