Help With First Deal

[Andrew Herrig]

Hi all, I am getting close to putting in an offer on my first investment deal. Was hoping for some outside opinions of what I am getting into.

The property in question is a duplex, 2/2 and 3/2, ~1350 sq ft each. Rental comps seem to be around $950 for the 2/2 and $1050 for the 3/2. The property is in good shape, just needs paint and maybe minor updating in the kitchen (refacing cabinets).

It is listed for $160k but I am hoping to get it for $150k or less. Assuming $150k and $5k in improvements I get a cash flow of ~$450 per month. Would be financing around 4.25% with 25% down.

Gross rents = $2000
NOI = $1000
Debt service = $553

Anything I should be watching out for? Any red flags?

Thanks,
Andrew