Am I suffering from cold feet?

[Sal Orlando]

I currently live in a house hack and was looking to buy a second property strictly as an investment property. I am seeking feedback just to get an understanding of maybe something I am missing. I guess what is stopping me from signing the contract is the amount of cash required. I would still have enough reserves but I am concerned the CoC is not high enough. Anyone have thoughts they could share? I would really appreciate it! See details below.

Property type: Duplex - 2 bed 1 bath (both units)

Purchase Price: 211k (25% down payment)

Interest rate: 4%

Current total rent: 2,200 (both long term tenants i believe I will be able to up rent to 2,300 total)

Cash on Cash return: 9.5%

Projected monthly cash flow: $517 

Cash needed: 65k

[Natalie Schanne]

@Sal Orlando - what's your current house hack situation? Is there any reason why you don't want to move into the new duplex for the next year in order to get lower lifetime interest rate, lower downpayment, etc.? (Let's say 3% 30 year fixed 80-95% LTV vs 4% 75% LTV). It's easier to fix up a place you're living in so it's well positioned when you're ready to move onto the next one.