Offering on my first real estate investing deal!

[Chad Duncan]

I submitted a written offer today for a property in a neighborhood close to where I live.

Here are some of the details, please let me know your thoughts, however harsh they may be...

Purchase Price: $295,000 (Seller is absorbing 4% for closing costs)
Down Payment: $0
Gross Potential Rents: $24,000/yr ( I feel that these numbers are a little low for the area)

Expenses: (Let me know if you think I may be missing something)

Property Tax: $3,800/yr ( I may be exempt in Oregon for have a disabilty from my military service)
Repairs/Maintenance: $2,400/yr
Insurance: $600/yr
Utilities: $2,200/yr
Total Expenses: $9,000 roughly per year

Net Operating Income: $15,000/year
Debt Service: $16,500/year (roughly)

I am trying to get the price down to $285,000 after my walkthrough and inspections. If I get that my numbers look better. Is there any advice that you recommend for me before I proceed?

These are rough estimates as well, so they can be lower or higher depending. I plan on 'house hacking' and using this as my residence for 2 years before I start investing in another property. This is the best deal that I have found in a 30 mile radius of my work. Everything is so much worse, number wise, when looking around my area.

If there is any insight as to what price I should try to negotiate or what other type of deal I should strike with the seller.

Thank you for your time in advance!

[Lisa Thoele]

Its really difficult to find a cash flow investment property in the Portland area.  I have worked with a few investors and am always looking for myself.  Not sure where you live but I have seen some in the Newberg area that do better numbers-wise.  There also was a great strategy mentioned on a recent podcast with marketing to landlords who are going thru the eviction process.  You might be able to get an off market deal by finding someone who is sick of dealing with tenants.