[Calc Review] Help me analyze this deal

[Crystal H.]

Getting ready for our first purchase and would love to hear any input people have. 

Our objective in real estate is slightly different than many others - we're over invested in company stock so are diversifying to real estate for less volatility. We don't need the cash flow right now. This is a long term play.

Property is a duplex in a hot neighborhood in a hot market for appreciation (Nashville). Idea is to hold for minimum 5 years, likely longer. The place has been recently flipped so new bathrooms, paint, floors. Opportunity to modernize kitchens in the future. Built 1980, brick. Tenants already in place with a year lease and they look solid. Tenants pay all utilities.

What am I missing??

Bonus Question: We're doing a walk through today. Any tips on thinks to look for / gotchas appreciated!

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*This link comes directly from our calculators, based on information input by the member who posted.

[Evan Polaski]

@Crystal H., here are the things I think of when I look at your analysis:

Who is leasing the property?  Often times 1 mo rent for new leases, 1/2 month rent for renewals.

What is the condition of the HVAC, water heater, roof and gutters, patios/decks, fencing, etc?  80s built means might be on original roof, but likely 1/2 through the second roof.

You mention there is opportunity for a kitchen, how is that being paid for and what is the lift available?

Who does the landscaping? Is trash built into property taxes?  You only have $50/mo of fixed costs and $119 for repairs.  If you have someone cutting grass once per week at $25/cut, that is almost all of your maintenance budget each month.