actual/actual cash based return rate:
1. base 160000
2. gross income 1200*11=13200 with one month vacancy
3. taxes+insurance 300*12=3600
4. water (because it is a duplex, 1 meter) 50 quarters *4/2=100
5. yard and lawn (because it is a duplex) 200 (where the hell do you get such a good deal for lawn service for a year..)
6. legal cost (potential litigations) 1 case /10 years, 50 per year.
7. repair/renovation needed depreciated to each year to keep at competitive rent level: 5000/10 year annualized to 500/year; again this is actuall the material cost... you got to paint and change carpet yourself...
total annualized cost: 4450
net income: 8750
ROI cash/cash 5.46% which is still not too bad.
However, if you want to be hand-free, then you got to pay 1 month for some one to take care of all the troubles, for some cost.... say a month...
Then you have net income 7550, or ROI 4.71% which is again still not too bad...