First Condo in Denver Co.

[Nicholas Mitch]

Hi all,

I am new to real estate and looking for my first deal. I am in Denver and want to buy some rental real estate. I think that the Denver market is picking up, but there are still deals to be had. As one example, I was looking at this condo online:

http://www.trulia.com/property/3032210101-520-E-14th-Ave-7-Denver-CO-80203

It is offered at $90K, but the price has been dropping, so maybe it could be had for $80K. It is in Capital Hill, a desirable neighborhood. I understand that rents in the area for comparable apartments are in the $1K-$1,200/month range. So if I put down $16K (20%), mortgage payment would be $410/month, or $4900/year. If I received $12K/year in rent, minus 50% for expenses/vacancy/etc, that would leave me positive by $1K/year.

Would you consider this to be a good first deal? Even if I don't buy this particular apartment, I would be interested in your thoughts on this kind of deal for a first time investor.

Many thanks.
Nick