first rental property

[Fernando Landeros]

I am looking to purchase my first piece of real estate. My wife has an uncle that wants to get rid of some of his rental properties. The one he wants to show us has a four bedroom home that also has a Duplex in the back. The 4 bedroom home rents for $1200 and the two duplex rents for a total of $1400.00. So I will be generating around $2600 a month on this property. He wants to give me a few options to pick from. What do you think is fair. In my eyes, I want to cash flow every month and have the property eventually pay off itself.

The thing is I don't know how much I should pay for the property.

Do you believe that paying him 8k upfront to take over the property and then paying him $1000 for 15 years be a good deal for me?

I would be paying $1000 on the mortgage. My taxes would be $216 monthly. Insurance would be $150.00 monthly. Setting aside 400 monthly for CapEx and $50 monthly for repairs. I am also adding $50 for vacancies. Is there anything I am missing. My expenses would equal up too $1900. With that math i will be cash flowing around $600-$700 monthly.

What do you think and what else should I ask myself?