You don't have an insurance expense and your property tax expense seems extremely high even without knowing where the property is. Also unless you already are pre-approved I would estimate a down payment of more than 10% unless you plan on living in one of the units.
I agree with @Aaron K. , the property taxes seem high without knowing the area. Also, I would look for value-add opportunities in the property if you can fix it up, raise rents, etc...
Another thing I thought was strange is that the right side has a top and bottom and the left side is all one side. Without knowledge of the sq ft it makes it hard to say but I'd imagine that the left side would rent for more than the right since it is not split into a top and bottom.
1)The property is in New Jersey, in a commuting town near New York City. So yes, the taxes are extremely high, but that number is unfortunately correct.
2)Each of the units have a different layout. On the right side of the property, there are two units. The upper unit is a 3/2 and the lower unit is a 2/2. The left side however is a 2/2 over 2 floors. So I figured I would charge $1700-$1800 for the left side (2/2) and right side upper (3/2), and $1500 for the right side lower (2/2).
I am thinking about owner occupying it. I would live there for a year, then move. In this scenario, I would become cashflow positive in year 3.
Have you considered shopping around for a better interest rate. 4.75% is a tad high. I am surprisaed you can't get higher rents for a 2/2 duplex. Have you looked at rental comps? I also saw no mention of PMI. Does your loan not come with a PMI and that's why the interest rate is a tad higher?
if you have any sources on where I can get a better rate, PLEASE let me know. I went to 2 other lenders and their rates were higher.
For the rents, I used conservative numbers, but I should be able to get more.
The mortgage payment includes PMI.