First Property Under Contract! Advice?

[Shadman S.]

Let me just start off by saying how thankful I am for BiggerPockets. I found the property on the marketplace, learned a lot from the topics and discussions and of course have used the calculator to analyze the deal. I'm excited to be in contract and just wanted some feedback and any advice you guys can give me on the process and where I should be careful, what I should look out for, etc.  

Just a brief overview of the property: 2 family property, completely gut renovated. 7 BR/2BA - 4br duplex and 3br first floor with access to huge backyard from both apartments. Contract at $220k, comps show similar properties anywhere from $250-280k. 5 minute drive away from NJIT/Rutgers, low crime residential area.

On the low end, I should be able to rent it for $3000/mo. After expenses, that'd leave me at about 13-17% COC returns of 20% down payment + closing. I live about a 45 minute drive away and can manage the property myself.

Appreciate the help, feedback and support!

[James C.]

Shadman,

Congratulations!

More information is needed to comment appropriately. If you posted all your numbers (APOD) then it would be easier... For example when you say expenses are you saying only current expenses, or are you including reserves? Are you paying yourself 10% for property management? Are you house hacking? What contingencies do you have in the contract? How are you financing?

The more information you give BP, the better BP can help you.

Good Luck!

Jim