Need analysis on a high end house that can be zoned as a duplex

[Jon S.]

I'm looking at this very high end property. Homes in the area are selling for $225/sf - $297/sf. It is currently a SFR, but is zoned as a duplex. It is 4000 sf, a beautiful south Tampa 2 story home, which would require 90K in renovations to convert. It would require 75K in renovations to leave it a SFR. As a 2 story duplex, with 2000 sf in each unit, each floor would have 3/2 layout. I believe rent would be $2500/unit, $5000 total/mo. I would have to put down 10% on the sale, and with renovation costs, would be total $150K out of pocket. Taxes are $11K/yr. Insurance, I'm not sure, but I'm guessing $3K/yr. Financing would be at 4.5%, and payment would be $2500/mo, $30K/yr. If I renovate, the maintanance would be pretty low. Property Management would be 9%. I figure my cash on cash return would be $7900/$150,000, which is about a 5% cash on cash return. Thoughts?