First deal analysis

[Glenn Espinosa]

I am a military officer looking to invest in real estate. I started my research with the goal to owner occupy a multifamily home and live for considerably less that what I am paying for rent now while also building equity on a property.

I will be financing through a VA loan and providing 0% downpayment.

Basically I have given up on the prospect of living for free and have accepted the notion that wherever I end up living I will have to pay myself in order to cover expenses (if that makes any sense)... I am in the Hampton Roads, Virginia area.

I am now in the process of signing out a contract on a 4 unit quad 1 block from the beach. The asking prices was $260,000 and we all but settled on $220,000 +seller pays 6% closing costs after my initial offer of $210,000. The building is in good repair, the 1 unit that I saw was well maintained and would only require small cosmetic fixes. The units are renting for $598 and are all currently rented and on a month to month contract, the tenants do not want to leave. Scheduled annual gross income would be $28,704 and after an 8% vacancy, $26,408 effective gross income. I would be moving into 1 unit and paying myself $598 a month. Property taxes were $2850 in 2010 and insurance quotes around $1650. Owner pays water and a high estimate is $3500 yearly. I've budgeted 10% for repairs or $2641 yearly.

All told
NOI = 15687
P&I = 14043
Cashflow for first year = 1644

thoughts?