Buying my first rental property - help please

[Rosa Lepore]

So I’ve been looking in Lakeland, Fl for a rental property.  I was looking for $100k price point and about 1% rental income.  Quickly found that was not realistic.  Houses were more like $125-$150k needing some work and $1000 rental, less than 1%.

I got in touch with a realty broker and management company who later contacted me with a duplex that they had not yet put on the market.  Asking $180k.  Had one offer at $170k which seller turned down.  

Now I am offering asking, so $180k plus closing costs a little over $5k.  Rental income combined for 2 units is $1700/month.

Putting 20% down, mortgage, tax, and ins payments monthly will be $989.  Management fee 8% of rental income.

Can someone tell me if this is a good deal?  There is a bit of cash flow which is better than the money sitting at a bank.  I guess I’m asking if the sticker price is good and if I’m buying at the right time.  Property is about 1700 sq ft.  Looks to be renovated as of 2017.

I’m also hearing a lot of people talking about a real estate market downturn or fallout.  Is this something that I should be worried about?

[Bob Okenwa]

People have been predicting and worrying about a real estate downturn since the last real estate downturn. My advice would be to focus on achieving your goals regardless of the market. If you make smart and careful decisions, you should end up doing alright in the long run.

As for your deal, have you tried running it through the BP rental calculator? Our opinions of what is "good" may vary so I'll refrain from labeling the deal as such, since some people view good as $500/month cash flow and others would be happy with $150/month.Some people want their money back in 7 years, 3 years, 15 years, etc.

Have you accounted for maintenance and vacancy? Utilities? In my opinion, a good deal is one that helps you reach your goals according to criteria YOU set. Set your goals/expectations then re-run the deal to see if it fits what you're trying to achieve and you'll have your answer as to if it is a good deal for you or not.