Analyze my first deal in Orange County NY!

[Kevin Fonda]

I'm on the verge of closing on my first deal! Very excited and so I wanted to post my experience up to this point. First of all, the deal: I purchased a 2 family duplex in Orange County NY. Purchase price is $177,500. I put down 25% ($44,000). Closing costs will be right around $14,000. The numbers are as follows: Gross rents are $2,400. After mortage/taxes/insurance, $200 in expenses (for garbage and common electric charges), and $300 a month for vacancy and repairs (a little low but borrowed for closing costs so wanna pay back loan as soon as possible) the monthly cash flow will be about $500. Cap rate factoring the $300 aside will be about 8%. Any input/feedback about the deal? It's located in Orange County NY roughly 65 miles outside of NYC. **Interesting situation arose during the process. Place was recently vacated to facilitate the sale. While completely vacant at inspection, my agent let me know the owner was going to be letting a "friend" stay in one unit for 2 weeks. I immediately let my attorney know and he made sure the contract was for the units to be vacant and in the condition they were in at inspection. Fast forward 2-3 weeks and this "friend" has a large dog (which had gone the bathroom on the carpet in a bedroom) and had moved furniture in. I call attorney and he adds an addendum about having the carpets professionally cleaned and the apartment odor free.~~Fast forward another week or 2 and my agent noticed the person had 3 dogs and a cat and more stuff moved in. We were assured she would be out by the end of October. That didn't happen. In the process of trying to close by the second week of November, we hear from the sellers attorney that they are 'having trouble getting the "tenant" to leave'. The "tenant" has said they're not moving out until the end of November. Now initially I had thought...its my first deal and there's no reason to stress out about this. I wouldn't close unless the place was vacant and clean and so when that happened it would happen. Except I find out my rate was expiring and I'd have to pay ($600) to extend it because....rates have risen! At this point the tenant is supposedly out and we are set to close this week. I'll be doing the walk thru a few days in advance and am hoping the place is cleaned and ready to go. And I believe the seller has agreed to pay the fee to extend the rate. Just wondering how often others have encountered a similar issue. Thanks in advance for any feedback and advice!