Input needed on a duplex in Stockton CA
Hello Everyone,
I need everyone's input on a deal that I'm in the process of making. Here are details:
- Specs: Duplex built in 1976, each unit with 3 bedrooms and 2 bathroom
- Purchase price / financing: $199,000 with 20% down
- Rented: Both units are rented at $950/unit/month = $1900/month
- P&I: $770
- Insurance: $75
- Property taxes: $199
- Maintenance, repairs, reserves: 15% of total rent = $285
- Utilities: $0
- Property Management: $0 I will do it myself
- Vacancy: 10% of total rent = $190
- Cash flow:
- 1900-770-75-199-285-190= $381
- Tenants are section 8 with roughly 60-40 split between housing authority and tenant (40%)
There are couple of minor issues with the property which would need about $2000 of work but not currently required. Only because I would like to see my property in a little better shape.
Does this sound like a good deal? What concerns would you have? Is it difficult to deal with section 8 tenants then normal? Are there any pitfalls or things that I'm not accounting for in my assumptions above?
Please note anything else you feel may be helpful to us. Your input is much appreciated. Thank you much.