First Condo Investment- Deal Analysis- paterson NJ

[Blake Schreck]

I am looking at a condo that is going for 85K. It is in a 6 story multi unit condo building where i have put in other bids as well. This unit is updated with granite countertops and marble flooring, with nice bathrooms. It is a "loft" unit apartment 1 bedroom 1.5 bath unit with exposed brick& high ceilings. Alls i would have to do is buy new SS appliances and rent it out. Its not a great town, but its in a better area and decent building. but i want to invest my money and have a positive cash flowing property, and for my first one i want something small i can handle like this.

Rents go for 1250 to 1400. with expected rent to be 1325-1350. I only want to put 10 to 12 k down and finance the rest. So assuming a purchase price of 80K with 10% down (8K) and then + 4K for SS appliances. Total invested capital at 12k. and assuming a 72K mortage with a monthly nut of 1150 (including taxes($4892) hoa($234 etc). and i rent out for 1350 which is a positive cash flow of $200 a month.

I guess my question is, is this a good starter investment, and a good financing strategy? What would you do?