Maybe I did something good...or bad.

[Aaron Desimone]

I hope everyone had a happy Easter

I just got my first investment property under contract today.  It is a duplex that the seller and I negotiated down from 65k to 50k.  I have to admit the rush of the negotiations was amazing!  I left him with a contract on Friday and we signed it an hour ago.  I dropped a copy off at the bank so we could start the loan application, and one copy at the lawyer's office so they could look at it.  The online estimates for the property range from 100k to 124k.  The bank said it is right around 100K.  

The property is an over under duplex, 2 beds and 1 bath per unit.  They currently have one tenant who pays $625 a month, and will be out by the end of the month. The one unit is vacant, and that is where I was planning on my fiance and myself living until we can buy another property.

Property details

Purchase price: $50,000

Taxes: $2700 a year

Electric: paid by tenant

Water/sewer/garbage: $200 (paid by owner)

Insurance: $600 a year

Rent per unit: $625 (just the current rate and I will be living in the other unit for now).

Loan from the bank: $45,000

Interest Rate: 4.375%

Length: 30 year fixed

Estimated monthly payment (including escrow of taxes and insurance): $500.25 a month    (I got a printout from the bank).

Total money due at closing: $8500 ( I rounded up because they did not include the lawyer fee.  The lawyer said around $400).

The property can be rented out now, however I did want to upgrade the electrical panel (which is fuse/ with 200amp service/ 100amp per unit), and to change the heating and water, which is currently oil, to electric baseboard heating and put in separate hot water heaters in the units (the area does not have gas, and the lowest electric costs in the country).

I want to thank everyone for posting and sharing their knowledge on this site.

I would love to hear any feedback on this deal.  It is my first investment deal and I hope I am starting off on the right foot.