I've committed to taking the chance! New from NYC

[Khalil Favard]

Hello all, my name is Khalil from Brooklyn NY. 

I'm a branch manager for a major bank, and have been in retail banking business for about 7 years. 

Getting into real estate was something I always was interested in, but due to debt was never something I could begin. Finally I'm close to be debt free and hope to begin my journey mid to end of this year. 

My plan, high level of course is to purchase a 2 family home and rent it out. I plan to go into this with my mother, it's something she's always wanted to do as well. She brought her home (where we live now) in '99. 2 family and basement for about 200k I believe. She worked hard and invested alot into the house. At the moment it's worth about 600k,and pays for itself between what I pay her for the basement and the tenant upstairs. 

We plan to use the equity in the home to down-payment the property and hold us down while we get things together. 

What at I'd like to gain from biggerpockets is guidance and advice around the actual process of finding a good investment property at right price, requiring minimal renovating and repair. 

I was considering Newark NJ and renting out to section 8 for security of making sure I get paid,but once again this is all high level. Here are some basic #s:

Out HELOC for 100k

Property for 250k

Down payment 5% or 12.5k

Closing costs ~12k

Monthly total mortgage (est @ 4.5% and mtg ins. ) ~$1650.00

Rental income from both units from what I've seen online: ~ $2400

Leaving ~ $750

Setting aside 30% into emergency maintenance account : $225/month 

Profit: ~$525/month 

As for the HELOC, I plan to take advantage of interest only payments @ about 4%. It will be paying for the following :

12.5k down payment 

12k closing cost

Mortgage payment while finding tenant, thinking worst case 3 months

5k

Other expenses (things I may not be factoring) 

5k

Total:

~35k

So my monthly payment interest only being about 

$120/month. 

Once everything is up and running I'd lock that portion and pay it down as quickly as possible. 

This is all hypothetical numbers, they could be more or less, but I tried to over estimate expenses. In my line of work I've dealt with many loan officers and feel with my credit score and DTI I should be able to get great rates.

I'd appreciate any criticism or suggestions as I'm very new to this, take it easy on me though... Lol