This will be my first deal and I am in the final stages. I need to meet with the broker and owner and decide on a concrete price and it will be mine. I am nervous and exited and I am sure I will learn (good and bad) along the way. I will provide as much info as I can and please ask questions if you have any. The property is in a Duplex in a declining area in NWI, not drastic but slight. It is about a C area and the place is in decent shape and the upstairs is rented to a great tenant, but the down stairs in un-rented and needs a little to be rent ready. Downstairs is 600 a month, I might raise it, and upstairs is 700 a month, again I might raise it. The building is old (1910?) but in great shape minus a few odds and ends and I factored that into my analysis (link below). Depending on family I might not need a conventional loan, but if you have tips on how to get the best rates please feel free to share. The asking price is 69,000 but I am hoping for 60k when it is all said and done. Gas and electric are paid by tenant and sewage, water, trash is owner and is just under 1,100 a year. Property taxes are 2300 and insurance is 800. There is central and and duct work but no AC's, I do HVAC so I figured not a big deal but I factored that in as well. With what I figured and you will see in the link, it is about 400$ a month after all expenses and calculating repairs and misc or about 5,000 a year. Depending on price it will be a 9-11% Cash on Cash, and i believe that is good. If you read this whole post I appreciate it and am looking forward to hearing from you guys, thanks!

http://www.calculator.net/rental-property-calculator.html?cprice=65000&cuseloan=yes&cdownpayment=20&cinterest=4.5&cloanterm=30&cothercost=1500&cneedrepair=yes&crepaircost=5000&cafterrepairvalue=70000&ctax=2500&ctaxincrease=3&cinsurance=900&cinsuranceincrease=3&choa=0&choaincrease=3&cmaintenance=2400&cmaintenanceincrease=3&cother=1200&cotherincrease=3&crent=1200&crentincrease=3&cotherincome=0&cotherincomeincrease=3&cvacancy=8&cmanagement=10&cknowsellprice=no&cappreciation=3&csellprice=200000&cholding=50&csellcost=8&printit=0&ctype=&x=31&y=15

Welcome and congratulations! I'm also a new investor in NWI. I'm working on my 3rd deal now, closing on the 20th. Good luck! 

Richard,  I like analyzing so I'm happy to help.  I ran the numbers and seeing about 8% cash-on-cash.  I used the numbers in your calculator which I noticed are more conservative than your post (1200 instead of 1300 rent, 900 insurance, 2500 taxes).  I like the idea of going slightly conservative.  Here are thoughts that came to mind:

• You mentioned a slightly declining area but your assumption for appreciation is 3%.  What if it does not appreciate and maybe even depreciates?
• Is the water bill you pay based on only the upstairs being occupied?  What if your water bill doubles once the entire building is occupied?
• Maybe go with higher than 8% vacancy allowance at least for the first year while you rehab the bottom unit?
• Your maintenance/Cap Ex allowance is about 17% which seems smart considering the age
• You used 65,000 selling price, but they may stick to 69,000
• I think you know this already but the $400 after costs is your net operating income, so before tax cashflow is $137 just to be clear

Overall it seems like you got everything covered and the numbers look good to me if correct.  Any chance you could self-manage?  Without the PM cost the numbers are a no-brainer.  

How has the due diligence been going?  You have a copy of the upstairs lease?  The units are separately metered for gas and electric or you bill them pro-rata?  

Did you end up buying this? @Richard Moro