Thinking of First Buy and Hold

[Alexander Flores]

Hey all I am about a month into researching REI and BP. Found this house in NJ, about 5 minutes from where I live, so I know the area very well. Here are the numbers.

Listing Price: 90k, went down in price 35k yesterday.

4 Bedroom, 1 Bath

Maybe 1k in rennovations, all cosmetic. (paint, flooring, a few small wall patching, etc.) Plan to do reno myself with help of a friend or two. (We grew up working for a friends family contracting company)

Taxes: 4.5k

Estimating 10% vacancy and 10% maintenance

With a 5% 30 year loan estimate, looking at expenses of $1,100 a month. Rental comps in the area(could only find 3br) are $1400-1800 a month. Even if I can get a tenant for $1300 a month, 200 CF is not terrible I do not think. Also it would only be about 15k cash in hand with 10% down, closing costs and 2k for renovations.

Also I still live at home, my monthly income is 3k and monthly expenses is $700.