First Investment in Rochester, NY

[Jake Kodweis]

Hey folks, I've been on BiggerPockets for about a week and I am amazed at how many people are reaching out to offer advice.  Thought I might post a summarized plan for my first investment in Rochester, NY... love to get some thoughts from the pros!

FIRST INVESTMENT PROPERTY GOALS & CRITERIA

GENERAL

Implementation Date: January 2017

Strategy: Long-Term Buy & Hold - passive income, 2-year live-in

Type of Property: Multi Family (duplex)

Location: Rochester, NY (Park Ave Area, ABC Streets, or comparable market)

COST & FINANCING ASSUMPTIONS

Type of Financing: FHA Loan

Downpayment: 3.5% ($2,800)

Interest Rate: 3.75%

Max. Finance Amt: $77,200

Max. Purchase Offer: $80,000

Improvements Budget: $7000

Est. Closing Costs: $3000

Max. Cash Outlay: $13,000

REVENUE CRITERIA

Average Rent: $1500

Target COC: > 10%

Target Cash flow (monthly): > $100

EST. EXPENSES (ANNUAL)

Vacancy: 10%

Property Tax: $5000

Property Mgmt: 10%

Maintenance & Repairs: 5%

Advertising: $100

Landlord-paid Utilities: $800

CAPEX: 8%