Help analyzing a potential first property

[Scott Lyons]

Was hoping to get some perspectives on a three unit (2-2br, 1-1br) deal I'm evaluating (would be my first property). I put a quick analysis below (hopefully it's clear). It doesn't appear to have the best numbers but it's a pretty much turnkey property in one of the best school districts in the state with very little inventory. Would be curious as to anyone's thoughts.

Estimated Purchase Price	215,000
Cash down	43,000
Closing Costs	5,975
Total Cash Needed	48,975
Financed	172,000
Interest rate	3.88%
Current Rents	2,150
Monthly Rent Estimate	2,400
Estimated Rent to Purchase Ratio	1.12%
Year 1
Gross Scheduled Income	28,800
Vacancy Rate	8%
Net Rental Income	26,496
Other Income	120
Gross Income	26,616
8% Repairs and Maintenance	2,304
8% Property Management Fees	2,304
Taxes	5,833
Insurance	1,200
Utilities (water & common)	1,000
Total Op Expenses	12,641
Net Operating Income	13,975
8% Capital Expenditures	2,304
Debt Service	9,706
Before Tax Cash Flows	1,965

[Account Closed]

Originally posted by @Scott Lyons:

Thanks for the input Elijah. My analysis always includes property mgt fee, but in instances where I know I'll at least initially be managing myself I tend not to worry too much on whether it's 8% vs 10% vs. whatever.  Very good points on the cash on cash. I don't think I can justify this property. It was so tempting with it being nearby and in a very good area.

Before you give up on it can you come up with with a purchase price that makes sense, that would give you the cash on cash you want and then make an offer?