Advice on purchasing my first 2 family home.

[Artem Samsonov]

I live in NJ and found a property I really like. My girlfriend and I are currently renting for 1700 a month with utilities at about 550 a month. (Poorly insulated house and the propane is around 300-400 a month to heat). So total expenses are about 2000-2100.

I was able to save up a little over 200k at 26 years old. I want to use about 100k max to buy one duplex where we can live and rent out the bottom floor. I have created an LLC to protect myself. After I get the mortgage under my name, I will switch over the house to the LLC. The house will have a land trust on it because it is a private document and make it belong to the LLC. Essentially making it harder for someone to sue you.

Going back to the property I liked.. I want to see what everyone thinks about these numbers and if it is a good investment.

This home has just been renovated. New kitchen with new appliances. New wood floors. New deck. New landscaping. Driveway paved. Repainted. New doors. New lighting. New furnace. New water heaters. New AC. New bathrooms. New roof. New windowa. Warranties provided for ac units (2 of them) and water heaters as well as appliances. Tenant pays for their own utilities entirely.

Selling Price: $439,000

Offer made: $400,000

Down payment: 20% $80,000

Taxes: $9,200 per year

Hoi: $1,680 per year

Sewer: $900 per year

P&I: $2,481 per month

Public sewer, gas-natural, public water.

Unit #1 downstairs (2 bed 1 bath with 1700sqft basement unfinished). Market rent $1700-$1800.

Unit #2 upstairs (3 bed 2 bath). We will be staying here. Market rent is 1900-2300. We will be paying $1500.

I am calculating vacancy at 5% ($155), repairs at ($85), and Capex at 8% ($248) per month.

I think this totally makes sense, but want to hear everyones input.

First time renting out. What kind of contract would be best in Nj. Should I charge a premium since it is just renovated?

Is there any way to check if construction was done properly? I don't want to see cracks in the walls in 5 years because of foundation issues. The house is the cleanest I have ever seen.

Thank you for taking the time to help me!