Help analyzing a deal

[Scott Lyons]

Hi,

I'm looking at a two unit (1br+3br) property that I'm interested in and was hoping for your all's feedback on it. To me the numbers look pretty good, however both tenants are on a month to month (not sure if that is good or bad) but would be willing (so I'm told) to sign a 1 year lease which would be part of the contract. It was owner occupied so I'm having trouble verifying the rents and it's in an decent area but there aren't a lot of comps when it comes to rent. 

List price: 130k

Est Purch Price: 120k

Repair costs: 1k (based on what I know now it needs very little repair)

Closing costs: 3,500

Cash down: 30k @25%

Current rents: 1,500/month

Income: 16,200/yr (includes 10% vacancy rate)

Expenses: 7,580

-1,800 repairs

-1,800 property mgt (but plan to do it myself, at least initially)

-2,880 Taxes

-1,100 Insurance

-Tenants pay water/heat/electric

NOI: 8,620/yr

Any thoughts/opinions would be appreciated or if there are other numbers I should be including/looking at. Thanks.