Im a little confused

[Todd Whitfield]

Hello,

I'm just starting out in real estate, and was wondering a few things. I have been browsing this site for a few weeks and the wealth of knowledge is incredible.

It just seems that I am missing something. I know I have a ton to learn, but what am I not seeing.

In the area I live in, there our tons of multi family homes on the market. The majority of the homes average between 100k to 150k solid homes with no major defects. The rents average anywhere from 600/mo to 1200mo depending on location.

The one I have my eye on is a triplex town house style, built in the early 90's, two bedroom 850sq ft. each. This house sits a block away from a Big East University where rents average from 500 to 600 a bedroom or 1000 to 1200 a month. The students usually pay up front yearly, or this is what 'I have heard if I was to go this route.

The assessment value is 279, 0000 with land and structure, its on a 5000sq ft lot, with 6 parking spaces. Its an urban area.

Its listed at 99,000. I know the assessment does not mean much in this market, but if my math is correct.

The mortgage would run around 700mo
taxes are 375 mo
insurance 100mo
fixes 500 mo

Cost a month 1675.00 month
at the low end the rents would bring in 2450.00 month.
Thats 775mo cash flow.

I would hope to get this property for 90,0000 take the loan for 110,000, using the extra 20,000 to bank, improvements and any catastrophic failures that could possibly happen.

The thing is I am not sure I want to use any of my funds. The deal with my wife is to completely separate from our personal home and funds. Is this possible?

Someone bring me back to realty, this seems a little to good to be true. I'm not really looking to make a monthly income just to cover the mortgage, and hold onto it for a while. I would like in the future to own three or four of these.

Have at it, make me see the light. I'm pessimistic by nature but I am having a problem finding any thing wrong with this deal

Thanks,

TC