Need help to decide on my first rental investment

[Hannah Ly]

Hi All,

I'm a newbie here. Since I found out about BP (5 days ago), I have done a lot of reading on here. One of the most important key takeaways is always asking for advices from BP masters. I live and work in Sandy Springs, GA. I was approached on 2 condo package deal $200K in a very good location in Athens, GA. These 2 condos are updated (look very nice). The current owner rents it out for 1000/unit.

These are my numbers. Vacancy rate 5% (seems low but it might be 0% since it's a college town and at high demand location.) Maintenance/Repairs is 5%. Current assumption is that I won't need PM. My sister goes to UGA so I think it's easy to have tenants . But again this is my first time, I dont know a lot of things.

First of all, any feedback on this analysis and recommendation to improve it are appreciated. 

How are Cap rate % and ROI %? Is it a go or no go? My setback is HOA ($125/month per unit)

Cost Assumption
Purchase Price	$200,000
Land Value
Building Value
Improvement	$500
Closing Costs (2.5%)	$5,000
Total Cost	$205,500

Financing Assumptions
Downpayment	10%
Finance Amt	$180,000
Downpayment Amt	$20,000
Interest Rate	4.5%
Mortgage (Years)	30
Mortgage Pmt	$965

Key Values
Cost/ Unit		$102,750
Cap Rate		7.4%
Cash ROI		14%
Total ROI		33%

	Yr 1
Revenues
Rental Income	$24,000
Vacancy Rate	-$1,200
Net Rental Income	$22,800
Other Income	$0
Gross Income	$22,800
Expenses
Property Taxes	$3,000
Insurance	$400
Property Mgmt	$0
Maintenance & Repairs	$1,200
HOA	$3,000
Total Expenses	$7,600
(NOI)	$15,200

Thanks for your help!

Hannah