22 YEARS OLD BUYING MY FIRST INVESTMENT PROPERTY

[Andres Castaneda]

Hi everybody,

I am new here to the BP community so I wanted to introduce myself! My name is Andre and I am a 22 year old realtor licensed in New England. This will be my second full year being licensed and I am in the beginning stages of purchasing my first property ever, which happens to be an investment. This isn't my first attempt, I tried earlier this summer and the home ended up having title issues which prevented me from purchasing the home. Deed was defective and I would be locked in for over a year before it was resolved. 

Fast forward to a week ago. I get wind of an estate, it is in a condominium complex. Desirable location, no serious work needed besides cosmetic upgrades and the sellers are listing with me as well. I wanted some input from the more experienced investors here. We have agreed to 136k purchase price. My resale projection is 175k(conservative) to 190k. Estimated repair costs are 6k, all cosmetic; the unit is in great condition. Other expenses including, listing co-broke, transfer taxes, and mortgage for 2 months will bring me to about $13,600 into the unit. A total of 149,600. I spoke with a good friend and investor client of mine and he suggested I increase my rehab budget to 8k(I sent him a video of the unit). So I will round my total up to 151,600. Resale estimate 180k and 20% gains tax I am estimating profit near 22k.

Am I missing something? Any expenses I did not account for? I'm nervous. This is my first purchase ever and I want to make sure it is right. Ironically enough I've helped multitudes of my investor clients buy and sell rehab properties but this is my first time doing it myself. I am very superstitious and feel if I speak about something before it happens it never goes through but I need advise here so any and all is highly appreciated and will keep you all updated. I sent the formal offer this morning after we agreed to a price and she is having her attorney review it. Fingers crossed!