Need advice with first investment opportunity
Hey everyone.
this is my first time posting and I’ve been doing a lot of homework lately.
i been looking in Pennsylvania for my first investment property.
i came across a property today. 2 family ( duplex ) in a desired part of Pennsylvania.
rent roll is 2200. Everything is turn key. Was a fix and flip , electric heat. New LVP flooring. New windows. New roof , New stainless steel appliances , bathrooms everything separated ( water, gas , electric , water ) with tenants paying all utilities. and the ask is 220k ( meeting the 1% rule ) I would ask to close at 210k, if I were to land at that price
with Taxes , Insurance, Principal, at 4.6% interest rate, I'm Looking at 1200 monthly payment. When calculating my numbers I like to put 18% aside from rent roll for minor , major and vacancies which would be another 400 which brings me to 1600. Based off my numbers with down payment and closing my ROI is 14%.
im getting kind of nervous, cold feet. Idk if this is good , not good enough. I know the market is hot now but what if the rent market cools down. I’m getting slightly turned off
please , any advice would be greatly appreciated
Thanks