URGENT ADVICE NEEDED AGAIN??? Multi Family - Flood Zone - A+ DEAL

[Daniel D.]

Hey Everyone, 

I need some advice again. Last thread went extremely well, i learned a lot. 

Looking at a property in Paterson, NJ. 

Property Cost: 58K 

Renovation Cost: 100K (a little on the high side, but better safe than sorry)

So far im in 158K. Im figuring closing costs, and other unexpected fees, vacancy factors i will be in this property for about 200k when im done with renovation @ everything else. 

I am paying and buying this property in cash. All the renovation will be in cash. 

After all said and done, the house will be worth about 260K on the conservative side. 

Im planning to do cash out refi, which will get me about 70% of what the house is worth after all the renovations are complete. 

Now the fun #'s. 

Property taxes $420/month

Mortgage $1000/month

Regular Insurance $100/month

FLOOD INSURANCE: $660/month

Total monthly cost: $2200/month (approx). 

I understand there are management fees and some vacancy fees, but at the moment those are very low for me. 

The house will be bringing me in about $4300/month in gross rent. 

So all said and done i will probably be profiting about 2k a month from this property. 

Now there is a high risk that the area will be flooded at some point. But im covered if anything does happen. I am also covered for loss of rental income during the renovations if the house gets flooded and destroyed. Only the basement gets flooded. 

I think this will be a good deal, there will probably be headaches down the road when there are floods, but i will be profiting 2k a month from this property and i will be covered for any damage that may occur. 

What do you guys think?

THANKS!