My First Rental Property

[Max B.]

For about 8 years I have been trying to get into the Real Estate market. I have been saving my money, and think I have finally found a deal worth pursuing.

The property I'm looking at is listed for $54.9k, It appraised in 2009 for $130k. So the taxes are pretty high, but I think I still can get 2:1 rents. Better yet I plan on buying the property cash. Its a 2400sqft Brick Duplex, in the city. Across the street they are renting a 3/1 for $800 a month. The property is bank owned, and I plan on offering $44.9k cash.

So I'm hoping to get it for $50k
+ $500 inspection costs
+ $700 closing costs
+ allocating $8800 for repairs and an initial bank for taxes, vacancy and insurance.

So I'm calculating based on $60k, which like I said I have cash. Yet I'm want to think of it like I have to borrow the mnoney - $60k @ 4.5% for 30 years (i know non-owner occupied loans are higher) = approximately $300 a month + $125 taxes & insurance = $425 a month.

The place is two 3 bedroom units, but the third bedrooms are small. Bank claims the units were rented @ 700$ a month through section 8. So I'm thinking they should rent pretty easy for at least $500 each side.

$1000 a month income, $425 a month mortgage/tax/insurance.

Unfortunately I live out of state now although this is my hometown and I come back to visit 3 times a year on average. I was thinking about having friends and family help me manage the property but now I'm thinking about a property manager.

Two questions for my peers here at BP
#1: Does it sound like a good deal/investment overall?
#2: Should I consider a property manager and can I afford it?

Thanks for reading