First Deal Financing

[Dewey Jurich]

Hey guys,  I'm working on my first deal.  we're completing financing approval now and wanted to run this by the community. 

I have an LLC with a partner.

We are g with a commercial mortgage.  We don't want to risk a bank calling the note if we quit claim a traditional mortgage.

Deal basics:

Duplex house close to transportation

Purchase price:  109,000

Closing costs: $3,500

rehab: $5,000

ARV: $125,000 (maybe 135,00), but the house should be almost turnkey

Downpayment:  $21,800

Loan Fees: $1,500

Loan Interest: 4.8% over 20 Year Amortization

Monthly P&I-$563

Montly rental - $1,000 Each unit - $2,000 total

Monthly Expenses total: $1543

(Monthly- Vacancy 200, Capx-100, Water-20,P&I-563, Repairs-160, electric-50, Management-160, Taxes-293)

Cashflow: $453'

Electric is only for common areas, all utilities paid by renters.

Is this type of commercial loan a good fit for buy and hold?  It seems to work on paper, but wanted to see what others thought. 

Property Management- I found a contact that will PM for 8% of rent, and place tenants for the first months rent.  Is this standard?  

Thanks everyone!  My partner an I are getting there!