Deal Analysis - first SFR

[Cliff Harrison]

Hi All,

I am new here on BP but have been lurking and learning for a couple of months.  Ready to get started on some deals and frankly tap into all the expertise and wisdom that I've seen so freely offered on these forums.  I know I am not going to present the information efficiently here so forgive me for that.

Myself:

My goals are to build a performing buy-and-hold inventory to create an additional (modest) income stream and build up equity to tap into for retirement.  Mid-40s.  Gainfully employed in the IT sector for 20 years.  Free and clear on my primary residence.  Married with kids.  Hello!  :)  Plan to use professional property management and a general contractor on rehabs.   Looking at turnkey also.  Financially no concerns about my current situation or kids college, etc.  

THIS DEAL:

Location: Far South KCMO (south of 435) nice quiet neighborhood.  I would call it a solid B area.

PROPERTY: SFR 3/1.5/1 1050sqft 1960s construction in nice condition, basically move-in-ready. It's owned by an older landlord who has decided to sell instead of rent it out again. He's lived near the house and has kept it up very well. Vinyl siding and windows.

Projected Rent: $925

Vacancy: 8%  

PM:  Yes, outsourced

Price: $65,000

Taxes: $1205

Financing: 

25% down using a primary residence home equity loan at 60% LTV I just closed at 3.25% for 15 years

75% investment property mortgage at 4.25% for 30 years

Other:  I plan to acquire more properties (up to 10 as that is what my lender is good for), and I prefer to spend a little more and earn a little less margin as needed to have quality tenants, although obv there is no guarantee.  If the next 9 deals are similar to this one, my home equity loan should cover all the down payments needed.  Then I will get one property paid off with cash flow (hopefully!) and add another, etc.

Does this seem like a good deal to start off with?

I know I need to get umbrella insurance for myself and find a great property management company.  But any other tips to take care of on the first property (establishing the business) feel free to mention or link to the posts. 

regards and Happy Holidays,

Cliff