First investment opportunity!!

[Alex H.]

My wife and I are starting to look into investing and purchasing our first rental. We were looking at single families for a while and kept our search close to home. The high taxes and little inventory meant there was little opportunity. We have since been looking into multifamily buildings as a new option, and in some cheaper areas too. We have one that we are looking into now listed for 230k. It is a 4 unit building with all 4 currently rented for 600, 710, 720, and 900, for a total gross monthly income of 2,930.

Expenses:

6,900 ann/ 575pm I estimated

1,200ann/ 100pm Insurance (although I really am not sure what it would be).

878 Mortgage. (I am using a 4% 30yr fixed in my estimation here, with a 80/20 LTV)

790pm Maintenance ( I took the list price / 2 then minus taxes and insurance

Total expences-2343pm

Gross Income  -2930pm

Net Income -586pm (15.25% ROI on the 46,000 down payment)

We are still looking at numbers and I want to make sure I am not missing anything in doing so. Some of these are estimates and I was really just looking for a little input on if I am on the right track here as its our first time and we are naturally feeling a little apprehensive anyway!

Thanks for any responses!!