Thoughts on my first buy and hold

[Dave Manning]

I've been following these forums for about 6 months, and wanted to get some feedback on my first deal. I closed on a 3 bed/2 bath duplex about a week ago, and am currently drawing up some renovation plans for when the current tenants move out in July.

Here are my numbers:

Purchase price: 181,000

Down payment: 46,000

Repairs:6200 (New roof, previous owner paying part)

Inspection: 525

Total cash in: 52,725.

Monthly rents: 1200 per side, total rent $2400

Tenants pay all utilities

$1032/month for mortgage/taxes/insurace (30 yr fixed at 3.99%)

After factoring in 10% vacancy and 5% for ongoing maintenance, I'm looking

Cash flow of $620 x 12= 7440. 7440/52,725= 14.1% ROI. Cap rate of 8.5%

Renovations are probably going to add another 8K to my total when all is said and done. The kitchens are original to this 1960 duplex, and one side only has a second half bath instead of a full bath.

I'm looking for your feedback - any comments are appreciated!

Thanks,

Dave