RE: Deal Analysis - 3 Unit - Cash Offer ROC NY

[Lamart Gomillion]

Hello BP,

I am in contract now to purchase my first property in Rochester NY. All initial paperwork has been completed. I am just a little nervous as I am just starting out and the first deal seems like it is the hardest thing I have had to do.

This is what the deal looks like.

Year Built 1900:

War Zone Area:

Fully Occupied:

DSS Tenants:

Unit 1 - 500

Unit 2 - 390

Unit 3 - 375

1265 Total

Initial purchase price 25,900.

Offer - 18,000

Seller Counter Offer 20,000 - I accepted.

Inspection yielded good results, roof is 4 years old. No structure damage.

Only issues were the appliances in the home, owner apparently never upgraded. Water Heaters are all ancient, but still operational, heating systems are ancient, but all still operational, when I say ancient, I mean 20 years old. There are some other small problems in the home, but not costly. The appliances I estimate will be around 10,000 total to replace, but I am counting on them not dying soon. But I will purchase 1 per year and pray the others do not die.

Financial Break Down.

Purchase Price 20,000.

Gross Rents 1,265.

Remax Property Management 151.00 - 12 Percent, I know it's high.

Repairs - 80.00 Monthly.

Property Taxes - 400 Monthly.

Did not factor in turnover cost vacancy repairs and Landlord insurance.

Monthly cash flow is estimated around 634.00.

Does this look doable, or have I made a grave newbie mistake. Your input on this is much appreciated.

Oh yeah, sorry almost forgot to mention if anyone ask. The reason I am paying all cash, Banks said I have no credit beacon, even though I see high 700's when I run the report myself, but I understand totally, I don't owe anyone any money. It is weird how America seems like it wants you to be in debt. Anyway, I got a secured credit card which I will be cutting up in a few months after I put a few things on them, I am really cheap, so I think that helps. I have allot of cash saved up, so I will repeat the same process 4 more times this year. Next year I will do cash out refinances on 2 of the 4 that I plan on purchasing.

Please, don't hold back, take me to school, I have thick skin.

Your help is appreciated, thanks.