My First Rental Property

[Manju Shackett]

Hi Everyone!

This is going to be my first rental property.  Any advice/ confirmation would be greatly appreciated!

This is a two unit Multifamily house sale by owner.  Asking for 145K,  I will put 20% down and finance 116,000.  I am estimated 4K closing cost.

I don't think there is much room for negotiation for price.  Guy bought for 132 and fixing it up and selling it for 145.

I am refinancing my Primary resident to get some equity out for down payment.

Rental income 1800 in total.

mortgage, taxes and insurance will be $960.

Vacancy, Property management fee, repair another 30%( $)540), 

Net income 300, ROI is 12%, after tax ROI is 9%

I have not factored in depreciation or any write offs.  

I have checked around, rent is 900 to 975 for similar units and Property is in very good shape so I don't anticipate much repairs besides some paint touch up.  However, I did include 10% repairs in my calculations.

I really need to check as my first real estate deal 10 years ago was a catastrophic failure( basically fault of my own for not checking facts and trusting realtor with numbers and rents), so I am kind a nervous and frankly bit scared for this one.

any thought good or bad?

Thank you!

M