possible first purchase

[Joe S.]

Hi all,

I'm thinking about making my first offer.  This would be my first ever purchase.  Thanks to these forums, I have found several investors in the same area who are more than willing to talk real estate and lend me advice.  I am very grateful for that.  I wanted to get some more opinions on this before I pull the trigger.  The property is a duplex that is located in a blue collar neighborhood close to Philadelphia.  Condition is good.  The area has not shown much, if any appreciation in the past, however it is a stable rental area.  Here is a breakdown of some numbers.  I would be house hacking by living in one side, but the numbers I ran are as if I do not live there  and have hired a property management company (even though I plan on being the landlord).  

Price: 95,000

Down payment: $3,325 (3.5% fha loan)

P&I: 429/m

Taxes: 300/m

Ins: 85/m

Rental Income $1800

Unit 1 (2bed) $900

Unit 2 (2bed) $900

Other monthly expenses: pmi ($69), vac($180), trash/sewer ($60), Ins ($85), repair($180) mgmt($180)

So according to my calculations this property would cash flow $321.44/m with a management company in place.  Total investment including $down and closing would be around $7500.  

My thoughts are that this is a good opportunity for my first purchase.  It's not going to make me rich but would serve as a good start to my investing career.  

Any and all opinions, comments, suggestions are welcome.  Thanks.