Potential First deal on Duplex with 10.6% Cash on Cash ROI
I have been analyzing numbers on duplexes over the past month or so and I came across one that stood out to me. Asking price is $97,500. Mortgage with insurance and taxes included would be right around $500 per month. Using the 4 square method expenses (repairs $100, vacancy $100, capex $200, property management $150) add up to be right around $1050 per month (with mortgage) Current income on property is $1300 a month. With $19,500 down, $3700 for closing cost, and estimated $5000 for repairs brings me to 10.6% Cash on Cash ROI.
Just want to make sure all my numbers are right before I move forward on pursuing the property. Should I add more for monthly repairs, vacancy, capex, or property management?