Duplex in Nashville
Hello all! I need help analyzing a duplex deal in Nashville. On the surface, it seems like it should cash flow but my analysis says different. This would be my first duplex so I want to make sure my numbers are relatively accurate.
2312 sq ft, 4 bed 2 bath each side, both sides currently rented for $1,100 each. The duplex is located in an up and coming area but there is a building next door that is in pretty bad shape. List price is $230,000 and it does not appear to need much in renovation.
Estimated sale price: $220,000
Gross annual rent: $26,400
Estimated annual repairs: $1,200
Taxes: $4,100
Vacancy: $1,100
Property mgmt: $2,640
Capex: $1,200
Insurance: $1,500
P&I: $12,000
Estimated cash flow after all above $3,860
DP + c.f. = $48,000
Cash on cash return = 8%
This just seems way too low for a duplex especially when I can buy an SFR in Memphis and get 15%.
I would really appreciate your thoughts on this deal as well as my analysis.