Possible first Deal

[Trey Stanley]

I think i have found a property that seems like it would be a nice starting point in my investing career. Its a Duplex each unit has 2 bed 1 bath and is currently full rented at 500 a unit. which is at least 100 a month under current rent rate for comparable units. here are the numbers.

Cost 40K (But i'm hoping i can get for 35K been on market for 45 days now)

Monthly rent-1000 or 12,000 annually

Expenses yearly approx.

utilities- paid by tenants

Taxes: 2012 taxes was 400

Insurance: estimate 700

Vacancy (10%): 1200

Maintenance: (10%) 1200

Management (10%) 1200

Misc: 2,000

I wanted to see if this is a decent deal. Also i was told that banks will not give a loan on a house under a certain price. is this true? if a loan is possible i would put down 10% 4k and finance the difference 36k.

[Edward Burns]

Numbers look reasonable, but maintenance expenses are depended on many factors. Remaining useful life of major items (roofs, HVAC systems, HW Heaters, plumbing, etc) need to be considered and planned for, but in addition did the previous maintain the property or merely "whitewash" the problem. Unfortunately neither of these 2 items are easy to answer.

As far as loans, yes there are minimums that many big banks have on the amount of a mortgage (usually $50K). However, local banks are a lot more flexible, so look for local funding options.