About to Make my First Offer.... Need Advice?

[Chungsoon Haw]

Hey guys,

I've been looking a SFR (2/1 semi) out of my city for the last month and I'm seriously making an offer. But before I go into that, here are the numbers:

Ask: 83k, 20% down, reno 4k, closing 5k = total cash required 24k

rent 850

5yr fixed on 30year mortgage 272.26

5% vacancy, 5% maintenance, 10% capex, 8% PM

property tax 1000, insurance 600

Seeing a monthly CF at 216, cap rate 6.82% cash ROI 9.9%

Of course, the rent is very conservative (I can probably rent it out at 850 without doing any reno). 

I believe I can get 950 and if I work on the curb appeal (corner semi), 1000-1050. Bringing my monthly CF to 289, 326, 362 respectively.

So that's what it looks like on paper. Looking at the other parts, I had an agent (we went to uni together and I trust him quite a bit based on how professional he was back then and he also invests in the area himself. He's also willing to PM for me at 8% like he does with a dozen or so properties his family owns) look at the property, take pictures and do some interviewing with current tenants for me (the tenant will be leaving at the end of this month). That said, I haven't had a chance to go see the property myself and will need to schedule a time this weekend to go see it.

My question to BP is what else should I do in order to minimize my risk? My plans right now are to see the place myself this weekend, let it settle and not let my emotions take over, and then make an offer (expecting to negotiate and will be contingent on tenant leaving) mid next week. Super excited and nervous as this will be my first investment and as a recent grad, it currently takes me half a year to make 24k (before taxes... so really closer to 3/4 year) so I definitely dont want to make any silly mistakes.

Thanks in advance BP!