Closing on an Investment Property. Need HELP ASAP

[Andrew Bailey]

This is my first investment, Is this a good deal or should I walk away? My goal is to keep this investment for 30 years, so long terms 

House information: This is a 2 unit house, located at 55 Kallen ave, colonie ny 12205. 6 bed room, 2.2 baths

Main stats

• Net Income (Monthly) = $419.28
• Net Income (YR) = $5,031
• Net Cash on Cash = 5.03%

Even though ROI is 5%, i still think this is good deal bc I didn't include the following:

1. Equitly Build up is roughly $4,000 per year. This bring my ROI to 9%
2. After the initial renovations, I can increase rent to $1,300 per month.
3. Tax benefits (depreciation is around $3,000 per year on low end)
4. good neighbor, good school, 10 mins away from where I live

Purchase Price = $250,000

Down payment = $62,500 (25%) / Closing Cost = $17,500 / Initial Renovation Cost = $20,000

Out of Pocket = $100,000

Loan = $187,500 / Intrest Rate 3%

Monthly Expenses:

• Principal & Intrest = 790.51
• Home Insurance = $100
• Taxes = $428.33
• Water / Sewage Bill (Owner) = $100
• Maintenace / Repaires  = $200
• Vacancy Rate = $161.88 (10%)

Total Monthly Expense = $1,780.72

Monthly Rent Income

• Unit 1 = $1,100
• Unit 2 = $1,100

Total Monthly Rent Income = $2,200



Initial Renovation Cost = $20,000

• Roof:
• Needs a New Roof
• Fix/add gutter
• Attic
  Mold
• Basement
  Water in basement (either gutter issue or need french drainage system)
  Mold
  Termites
  needs new Electrical Panel
  repair Sump Pumps
  needs a new 1 Furnaces
• Other small stuff:
• Leaking 2 sinks
  all Windows trims are bad
  needs 3 light Fixtures
  needs all Light covers for plugs
  need to repair 2 small Wall holes
  inside can use new Paint on some parts
• 2 missing sliding, needs cleaning