Help reviewing a deal - Rainier Valley - Seattle WA

[Joy Abia]

Hi, this is my first rental deal, I have no clue what I am doing would like to hear perspectives from more experienced people.

House is one of a 3plex in the Rainier Valley neighbourhood, Seattle WA (Henderson street to be precise)

3bed/3.5bath

Cost - 209500

Mortgage(taxes and insurance inclusive) 1138. Interest rate  on conventional 4.75%.

Buying from owner who wishes to stay on as tenant of one of the rooms. There is one more renter. Looking that rents in the areas seem to range from 1800 - 2200. I plan to charge 650 per room in rent for 6 months. Then get new tenant to rent whole house for 1800-2100.

I am paying 42000 in downpayments.  I keep feeling I could put my money to better use and that the neigbourhood being so unattractive (to me) may not really attract 1800per month renters.

However homes have appreciated in the area. This home last sold for 128000 in 2011. 

I am buying directly from owner and this home was never listed on the MLS but agent say if its listed they could get more money.

I hope I have given enough information to get an evaluation of the deal. Pls ask me more questions, I am new at this but want to learn and be certain before closing on the deal. Have the home in contract now.

[Joy Abia]

@Patrick Britton thanks a lot for weighing. I have been having second thoughts for weeks now. The more I interact with the owner the more second thoughts I have.

Initially I was gungho about the deal then I decided to do more research on bigger pockets and neighborhood research and I started getting the feeling you described "there are plenty of deals out there. no sense in getting a bad one just to get one."

I was afraid that I may be chickening out like I have done in the past 3years :-) but the more I hear   from you all the more I believe in my gut feeling and unease.

Thanks,

JOY