Presumably the 2nd year ROI would be much more attractive. Without the closing costs and down payment, these numbers show about $16,000 in expenses, which would be great cash flow.
I don't know where this is, but I'm skeptical that a 2/1 is renting out for $745. There are a lot of decent-sized homes in Kalamazoo that can't bring in that much per month. My duplex in the Westwood neighborhood (5 mins from WMU) is $715 for 2/1 and about 1000 sq ft.
Make sure you ask a couple of management companies and local Realtors about the potential rent.
As I found with a lot of the multi-family opportunities, any landlord-paid expenses will demolish most of your cash flow. Are each of the units metered separately for gas, electric, and water/sewer? How does the trash bill work out?
In any case, if you're a 100% rookie, contacting the seller's agent and taking a look is a great choice. If nothing else, you'll gain experience with the process. Don't get emotionally involved and be skeptical of any numbers you're given second-hand.
