Good Deal?

[Robert P.]

Two Family Property, 2BR/1BA each unit

Purchase Price: $175,000

Gross Rent: $1,800/month (might be able to get more, but let's play it safe)

Monthly Expenses:

Mortgage (includes taxes, insurance): $1,213

PM(10%): $180 (paid to myself)

Water/Sewage: $50

Vacancy (10%): $180

Repair/Maint (15%): $270

Calculations:

Cashflow: -$93/month or $87/month excluding PM since it's being paid to me

Cashflow without mortgage = $1,900 - all expenses except mortgage x 12 months = $13,440

Cap Rate: $13,440 (Net income using the CashFlow with out Mortgage)/$175,000 = 7.7%

In short, I would be getting around $537/month after collecting rent and paying my mortgage and water bill. Does this deal sound good? To add to this, the house is in a GREAT neighborhood (probably the best in the city) and will attract great tenants. It has a massive yard, driveway, and in overall great shape. I just need some help from the experts!!! This is going into month 9 looking for a home to buy!!!

THANKS!!

p.s. hope my math/calculations are all right!