Beginner Investing in First Multi-Unit
Good morning all,
I am relatively new at real estate investing. For some time, I've been reading & watching BP podcasts regarding rentals. I feel that I've done most of the ground work, minus actually buying a property. My goal is to make my first investment at the beginning of 2020, but I am in need of some guidance from you all. Recently I had found a duplex near my house that is currently fully rented. I'd like to get some input on the numbers I worked together below:
Purchase Price (assumed) - $61,000
Down Payment - 20%
- Monthly Total Rental - $1,200
- Mortgage - $227
- Tax - $110
- Ins. - $75
- Vacancy (7%) - $84
- Repairs (5%) - $60
- Cash Flow - $644
Cash on Cash: ~55% assuming additional cash for fees
NOI - $787
Cap Rate - 15.4%
Thoughts? To my eye, it seems like a deal that I would benefit from, but I am concerned about an unaccounted calculation on my part. I'd like to add that I am from the Pittsburgh area.
Thank you.