We are planning to put in ceiling fans in each bedroom and the living room, as well as insulating the roof a little bit because the crumbling plaster has got to go and make way for drywall anyway.

The beams in the roof are sinking and the foundation may have shifted.

New roof, new windows, paint, new hvac, new pool pumps, landscaping, appliances, and on and on and on...

There will be unit turnover costs, and capital items (water heaters, roofs, etc) that may need repaired during your ownership, so make sure you are saving for those with these reserves.To be honest, there are deals out there that make sense, but in today's market finding SF rentals where the numbers work is very challenging.  

I have another investor that doesn't want a roof with less than 10 years, but the nastier the HVAC the happier he is because it smells like money to him.

.~5% vacancy rate.Mortgage/taxes/insurance cost $1250/mo.Tenants pay electric, heat, and water.New roof 2016, but the propterty will need maybe $5K of work in the next 5 years.Duplex is in an "A" neighborhood, but appreciation has still been slow.Currently, the loan is being paid off about $5K per year.Please, any advice or analysis would be greatly appreciated!

I would also not be so distracted by the foundation that you neglect to consider the other issues...Mold probably means either a bad roof, or faulty construction (in the basement, it might be the same issue as the foundation).

@Moises Villasenor so how did you arrive at your capex number.My capex budget includes but not limited to: roof 25 year life span, floors 10  year life span, appliances and hot water heater 12 year life span, hvac 20 year life span, bath and kitchen 20 year life span.

Roof is 10 years old, one of the two furnaces is brand new (second is probably on borrowed time), one water heater from 2015 (second also on borrowed time).

.:/) Down Payment $27,980.00 (20%) Total Investment $37,980.00 Amount Borrowed $111,920.00 Unit 1 (3 bed/1.5 bath) $525.00 (rent we charge for our other properties) 3 $1,575.00 there's also a garage that I didn't know how to work into the numbers, or if it even should be worked in Total Investment Loan Investment Interest Rate(%) # of Payments Monthly Payment Notes $37,980.00 $111,920.00 4.88% 360 (30 yrs) ($592.29) Amortized Loan Total $671.25 (month) $8,055.00 (annual) Water/Sewer $40.00 $480.00 Trash $62.50 $750.00 every 6 months (750/2) Taxes (iffy on these #s) $267.50 $3,210.00 Insurance (iffy here too) $65.00 $780.00 Heat $- $- tenants pay Electric $- $- tenants pay Vacancy  $78.75 $945.00 (5% of Income) Management (we manage) $- $- (10% of income) Maintenance $78.75 $945.00 5% of Income Capex (roof, etc