20 year old seeking advice on first portfolio acquisition

[Daniel Kaplan]

Hey everyone!

After countless hours of cold calling, I believe I came across a gem of a deal. I am in communications with an individual who is looking to liquidate some of his portfolio as he is completing a hotel acquisition. This is an off-market deal located in Milwaukee, WI. The units are all completely occupied and cash flowing day one. It is 3 duplexes, renting for 1950, 1600, and 1500. Here are the numbers on the purchase of the portfolio:

Some assumptions - 50% expenses, 70% LTV (DSCR Loan), $4500 origination fee for DSCR loan, interest rate of 7.12%, 30 year am.

Let me know your thoughts as I would love any advice here! (side note - LtL annualized = $20,779 if we went section 8 route. However, would need to put money in to get up to code for s8 standards).

Portoflio
Purchase Price	$230,000.00	Could be $225k
Down Payment	$69,000.00	30%
Legal/Closing Costs	$4,500.00
Mortgage	$161,000.00
Interest Rate (%)	7.12%
Number of Years	30
Income	$60,600.00
Expenses	$30,300.00	50%
NOI	$30,300.00
Mortgage	$13,009.72
Cash Flow	$17,290.28
DSCR	2.329027404
GRM
Cap Rate	13.17%
Break-even Ratio	71.47%
Cash on Cash	$17,290.28	23.52%
Total Return	$17,290.28	23.52%

[Robin Simon]

Looks like a great deal from a numbers perspective - however, out of state investing at this price point (very cheap properties, etc - oftentimes you will likely not be dealing with quality tenants so that could eat you up as a new investor, especially if you are out of state).