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Updated almost 4 years ago on . Most recent reply
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Newbie with 1st purchase in sight
I'm an active duty military member that is currently renting a 3bd/2ba for $1350 and have talked to the landlord about purchasing. Is willing to sell, just want to make sure I fully analyze deal without going into analysis paralysis, so any advice, knowledge and insight would be greatly appreciated!!! Details of deal as follows:(copied numbers from BP Rental Property Calculator)
Purchase Price: $175k Purchase closing costs:$3000 (is this estimate accurate?) Repair Costs: ? Total cost of project: $178k Using VA loan, so $0 down. Preapproval: 30yr loan @ 2.75% with monthly P&I:$732
Plan on renting when I move to next duty station for $1500.
My estimated expenses are: (please advise if I'm missing something or my numbers are off!!)
Vacancy:$45/mnth; Cap Ex:$75; Insurance:$100(estimated, no quote yet); Repairs:$75; Prop Management:$150; Property taxes:$72; Mortgage:$732; No utilities/HOA Total:$1249
So am I correct to assume I'd be in the green about $300/mnth? Again, any suggestions or advice is more than welcome because honestly I so badly want to start my real estate investing journey, but this first deal is causing me a little anxiety. I do plan on asking seller to cover all or part of closing cost and rolling VA loan fee into loan so I can try to spend little to no $ out of pocket. Any other suggestions on how to accomplish that? I'd also like to close in 30 days, is that feasible or average? Thanks in advance for your input!