Potential Deal, Need Advice - Niagara Falls, NY

[Chris Lofstrand]

Hi Everyone,

I am new to biggerpockets and this is my first post. I'm 24 and haven't done a deal yet but i've listened to about 50 podcasts, read a few books, and now I am looking to start acquiring rental properties. 

The property in question is being sold by a family member, and they have not yet listed it on the market yet. From an informal discussion I have heard they are looking to get about $55k out of the 3 br 1.5 bath SFR.

I would have no problem offering $50k off market because they wouldn't have to pay any agent commissions, but not much lower because as I said they are family. Details are as follows:

Downtown Niagara falls off Hyde Park blvd, not the nicest neighborhood but not terrible. Looks to me like comparable SFR's are renting for $700-750/month.

Property built in 1904 but extremely well maintained, move in ready. NF county website shows FMV at $67k

3 br 1.5 bath, 1.5 car detached garage with electrical hookup

Assessed at $57k, Taxes were $2,650 last year

Landlords typically pay water in NF, my estimate is $45/month

Homeowners insurance estimated at $50/month.

I put the property thru the BP rental prop calculator with what i thought were conservative estimates for capex, etc. and it showed positive cash flow of $50 per month if I only put 10% down.

Any thoughts/advice/critique would be extremely appreciated. Thanks in advance!!