First Offer Accepted!!

[Chris Lombardi]

My first offer got accepted!!!

I'm really excited, but a bit nervous now that everything is so real.  I would love to hear your experienced opinions on the deal before the attorney review period is over.

It's a 2 family place and I would live in 1 of the units.  Currently, the other unit brings in $1,300 a month, plus there are 2 garage units bringing in an additional $100 each.  The monthly cost breakdown is as follows:

Mortgage - $1,200

Taxes - $700

Flood insurance - $170

Home Insurance - $150

Reserves - $500

I went into this saying I wanted to pay no more than I currently am paying in rent ($900) to live in this place.  So total income is 1300+200+900=2400 and total expenses are 2700.  I'm going into this with my father 50/50 so we will both split the extra 300 per month until we can raise rents.  Looking at comps, we can probably ask 1500 for the other unit and at least 150 for each garage, but I imagine we'll have to be patient to get up to these costs.  Also, if I decide to move somewhere else, I can easily rent the unit I live in for at least $1000.

The concern is that it is in a flood zone.  The numbers seem to make sense to me, but the unknown insurance increases and difficultly I'll have in eventually selling it gives me some nerves.  I might be just over reacting to the excitement, but there is still time to back out lol.  Let me know what you guys think.