First rental property purchase, is it a good deal?

[Aaron Rizzo]

Hey everyone!

I’m looking to purchase my first investment property and I’m looking at taking out $30,000 in equity in my current home to use as a down payment for a rental investment.

I found a property close by that I’m confident it taking care of. I just want to see if people here think my numbers can work.

Two separate houses on one lot. 800 SQFT and 500 SQFT. With a two car detached garage.

It’s a 5 minute walk to the beach and brand new everything, property is in perfect condition.

Asking: $114,000

Taxes:$2,350

Rent:$600

Rent:$800

Tenants pay utilities.

Mortgage would be around $600 with taxes and insurance and 25% down.

That would leave me with a cushion of around $800 pay for vacancies repairs or other costs. So I’m hoping four around $250 a door or so.

This sounds good to me personally, am I missing something here? Anyone have any thoughts on these numbers?

Thanks for all your help!

[Adam Costanzo]

Building off of what Brandon suggested, you could rent the larger unit for $800/month so you have that consistent revenue to cover your expenses. With the smaller unit, try Airbnb or shorter-term rentals to maximize returns. I get that may not be ideal right now given COVID but food for thought once things return to normal.