Help: Is this a good deal?

[Kumar Gunda]

Hi All, I just started out looking and came across this deal. Since it is going to be my first offer, I want to run this and get everyone's opinion to see if this is a good deal. 

Goal: Rental then later BRRRR

Property Type: 2Bed 2 Batch condo, 2000 sqft with a single car garage

Location: South Jersey close to Philly

Association fee: 280/month, Prop Tax: 610/month -- so total fees close to 900/month

Expected Rent: 1800/month and tenant pays electric, water and sewer.

This is a REO, bank is expecting 136k. My offer would be 120k

Was able to view the property and my assessment so far is: 

1. Need to replace Carpet  2. Need new appliances (Fridge, Washer, Dryer, Microwave and Oven) 3. Has popcorn ceiling. It is good through out the house but for in one room where it was cut. 

Additionally the property is on second floor and also has an elevator in it. 

So my estimate to fix the above is a max of 25K. 

I would put down 20% and get a mortgage for the remaining.

Closing costs: 4000

So total from pocket =  24k (20% of 120k) + 25k repairs + 4k closing = 53k 

monthly payments:  458 (30 yr loan at 4% on 96k ) + 900 = 1358 . This gives me a monthly cashflow of 1800 - 1358 = 442.

If I take the loan for the entire 120k monthly payments will increase by: 131, so I will still have a cash flow of 311. 

Market value of comparable properties: 180 - 190k

Any advice would be greatly appreciated.