Buy and Hold Analysis Help - SoCal

[Brandon Hughes]

I would like everyone to help me analyze this possible deal. I'm about ready to purchase another multi-unit property. My plan was to buy it as a primary (live in one and rent the other for a period of time). A local property manager and agent approached me with a client he has which may be interested in selling his property. The property is it is not currently for sale but the owner completely renovated the property and he wants to get 230k for the property. It is probably worth about 220k. He purchased it for much less so his motivation is to cash out. Let me get to the numbers...

Going to do the deal with a partner splitting everything

Currently Rented at 2200 Gross Monthly Rents

Down Payment 44k

22k of down payment be on my heloc @100/mo interest only payments (ill be paying more with the extra cashflow) (partner will do other 22k cash)

Loan amount 176k @ Approx 960/mo 30yr fixed

Insurance 80/mo

Prop Mgmt 200/mo

Taxes 140/mo

Repair 100/mo ?

Water/Trash 230/mo

Approx 490/mo Cashflow - I would be splitting this with my partner

245/each (my portion would be used to payoff my heloc $100 interest only payments - I would be paying off any principle with extra cashflow)

Please help me analyze this deal. Any thoughts would be appreciated?

Also,I do want to note the area is a growing area and it has gotten larger over the past couple years. We could possibly sell this later if prices continue to rise.