First Rental Property

[Dabvis Le Sutton]

Good Evening BP,

I currently have my first rental property under contract we are currently in the underwriting phase. The property is SF 3bed 2bath it was listed at 74,000 we offered 64,000 which is bottom line for the area the buyer took the offer. I got approve for a 68,000 FHA with 3.5% down payment for 30 yrs. After a year I plan to rent for 750 a month which is median for the area where rents usually go for 650-850. After expenses we would Cashflow close to 200 a month. I think it's a good deal the property values in the area are projected to appreciated around 7% this year. Any thoughts or advice or just feedback on how the deal looks?

Thank you

Sutton, Dabvis L.

[Blaine Alger]

Without seeing a spreadsheet analysis its hard to give my best advice, but it seems you have it all mapped out from first glance.

I would just make sure you have your  insurance included in the analysis and look out for those hidden costs. 

For the first deal, I don't think its as important to be a grand slam. As long as you are getting after it and taking action, a base hit or walk is good in my book. The learning experience is where the real value will come from. 

-BA