Analyzing my first deal

[Rachel Adeoye]

Hi,

I recently found a deal in the Magnolia Park area of East Houston TX. Based on a report, this is the info I could muster....

-Multifamily: 3 units

-Sale price = $140,000

-NOI = $1700/month

-Est. mortgage at 3.4% interest rate = $500

-Property tax in 2015 = $1,810

-Tenants are good (supposedly)

HOWEVER the surrounding schools show very low rankings and test scores.

Assuming there are no added expenses (which I doubt), the cashflow is looking like $1,049 (feel free to correct me if I'm wrong)

Is this a good or bad deal?