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Updated over 6 years ago,
Very new to REI, ran numbers, too good to be true. HELP!
First of all, thank you for clicking on this thread, there are a million of them out there and I promise not to waste your time.
So here is the scenario:
Multi-Family property (4 units) - Listed @ $205,000, on market 65 days.
Estimated Acquisition: $195,000
Realistic rent: $3000/mo ($750/unit)
Property Taxes/yr: $5200
Insurance/yr: $2400
Planned Maintenance/yr: $1200
Estimate Vacancy: 5%
Down Payment: 25%
Management Fee: 8%
I have just recently gotten into the concept of REI and I've read all of the forums, blogs, etc. of investors having a hard time trying to find a good deal in the Houston area market, and I found this property quickly, in a public method of discovery with very little effort in about 45 minutes of searching.
Financing the entire investment (through very creative means, which took me MUCH longer to figure out compared to finding this deal) seems like a no-brainer to me, but I'm scared I got something wrong in the math and this is not as good of a deal as I believe it to be.
I'm a newbie, I quit my job in the Oil & Gas industry, enrolled in real estate school, completed it in 3.5 weeks and I take my test 9/4/18. I have dedicated literally everything I have to learning and perfecting my role in this industry. I would welcome any advice/suggestions, and in appreciation to that advice I would welcome the opportunity to be able to return the favor in the future.