5÷ private loan

[Jordan Sutherland]

hello, I have my first investment property in contract. the property is a C class duplex in Lubbock, TX. I'm purchasing the property at 70,000. it was originally listed at 85,000 And the approximate worth is 80,000. The current rent is $1100 total for both units and both units are already rented. I was offered a private loan at 5÷ interest amortized over 30 years by a private lender. All I have to provide at closing is 7÷ ($7,000). The loan will be $350/month and all expenses are estimated at about $540/month. This leaves me with an estimated cash flow of $210/month. The duplex is in a neighborhood with poor projected appreciation With an initial investment of $7,000 And a projected annual ROI of 35÷, this deal sounds too good to be true. It's my first investment property and I'm still slightly skeptical about it. Does anyone have any input on whether or not it is a good deal to close on? Thanks for the help!