Please help me analyze this duplex deal
I would appreciate your input on this deal.
I know it is not a home run, but I thought it was a good started property to invest in.
It is in a great neighborhood with great schools and the rent and tenants are very strong. I was planning to buy and hold. Some numbers to look at.
Duplex 2 units 3 bedrooms 1 Bath each
Great school and 1 block to train in a very nice neighborhood.
$210,000 Purchase Price plus closing costs
$233,000 Appraises for
We would borrow 75% which is 172,500 at 5.5% is $979/month
$32, 400 year rent $1350 month each unit very good rental history
$11,750 P&I year
$7560 Real estate taxes and insurance (Taxes Yes very high in this area 6500)
$2700 vacancy two months.
$1200 Utilities on our end water and some of the gas heat in one unit
$500 Lawn and snow
$1620 Management fee 5% we will management the units we live about 2 miles away
$2000 Capex new roof, new heater, new hot water heater, new windows, newer appliances,
13% COC return
Please let me know your thoughts on this deal and if you would adjust any of the numbers.