First Investmen Property

[Jose Perez]

Please let me know what you think of this deal. It will be my first deal. The house is a multi family building (two flat) located in Chicago - northwest of the city. The listing price is 129,000. I offered 115,000 for it. We currently have the property under contract since April 2012. We are hoping to close in two months. The building has three units if you include the basement. Each unit has two bedrooms.

The average rent for a two bedroom in the location that I'm buying ranges from $750 to $900.

These are my calculation:

1st unit - 750 (tenant pay utilities)
2nd unit - 850
basement - 600

Monthly Income - 2,200
Annual Income - 26,400
Loan - 20 years at 4.50 %
Down Payment - 20%
Taxes - 4,100

The building needs some cosmetic repair nothing major so far. I'm estimating to spend about 6 grand on repairs.

What do you guys think?

Good deal or bad deal?