Looking for guidance on numbers on possible first deal

[Claude Robinson III]

HI BP fellows, Been reading and listening to podcasts. I am looking to pull the trigger on my first property and wanted to get feedback on the numbers from those who know. 2 bedroom 1.5 bath condo near college campus where vacancies are low. Price 281k Taxes 3200 HOA 200 a month Current rented for 1600/month till June but with some paint and cosmetic work could be rented for 1800-2k like others in area. Looking for guidance on how to value investment. Right now based on calc and tools I see that I would just cover mortgage, taxes and insurance. Claude

[Phat Vi]

@Claude Robinson III

Maybe you are looking for the appreciation in the future (I don't think this property is in Bay Area based on your listing price so I don't bet too much on appreciation), but just looking at the number, it is a terrible deal. I ran a quick (quite detailed) analysis for you on this property and I think you are in deep RED if you go for this property assuming you will have 25% down for your conventional loan. Your out of pocket annual cash flow is $14,462 in order to own this property. The Expenses maybe a lot but it is a conservative number.

Good luck with searching for your property.

Phat