Would you do this deal?

[Michael Williamson]

Let me start by saying this will be my first purchase as an investor and it will be buy-and-hold. If there are details that I have left out, just ask and I will answer what I know.

Purchase price: 89,500

Down payment: 20,000

Seller financing: 69,500 for 30yr@ 4.5%

Payment: 352.15

Taxes: 102/mth

Insurance: 38/mth

Property management: 75/mth

Vacancy Rate 8%: 60/mth

Tenant pays all utilities and trash pickup. There is no HOA.

Rent: 750 although I can easily find comps in the area that rent for 800-850.

Thanks in advance to all who respond. I really appreciate you insight.

[Jonathan Marcus]

I think it is good deal and the owner financing terms is excellent. I would suggest that you put a Right of First Refusal on the note just in case if a few years down the road the owner decides to sell the note at a discount, you get first crack at it. 

Good luck.