Need Help Analyizing a Duplex Purchase

[Daren H.]

Hello BP Members! I am considering a duplex purchase and would
like to hear thoughts about the following potential transaction below. The
units are 2 bedroom, 1.5 baths, 2 uncovered parking spaces each. Both units are currently occupied but I know nothing about the tenants at this stage other than they are leased for $700 a unit (area comps indicate $725 - $735 could be achievable). Below are the numbers:

Sale Price $109,000 (property built in 1983, physically looks to be in good condition but due diligence (home inspection) would need to be performed)

25% Down Payment $27,250

Rent $1400

6.5 % Vacancy Loss $91

(based on each unit vacant one month a year)

Effective Gross Rent $1309

8% Property Mgmt $100

(this is what my current PM would charge)

Insurance $85

10% Repairs/Reserves $131

Leasing Fees $85
(estimate derived from what my current PM charges)

Property Taxes $225

Misc $15

Operating Expenses $646

Mortgage Payment $414 (4.5% interest @ 30 years)

Cash Flow $249

Rent to Value 1.28%

50% Rule 49.32%

Cash on Cash 9.57%

All comments, feedback is welcomed. Thanks!