Found a property but the numbers don't seem right

[Michael Abate]

Hello fellow investors, I'm hoping that you can help clarify if I'm getting something wrong with a deal that came my way. I was planning on buying a property in NJ and after all the numbers, there is still a negative cash flow. But the property is still getting offers that are higher than mine. Some advice would be really helpful here and time is short here since they may accept the other offers before mine. The details are as follows:

• Current Price: $370,000
• My offer: $320,000
• Condition: House is in rent ready condition but I have added $5000 for touch ups here and there
• 2 Family House with each unit renting for about $1300
• Insurance/yr: $700
• Taxes: $11,500/yr
• Loan: FHA with 3.5% downpayment (30yrs)

Here is a link to the analysis that I did as well in case that helps, this is analyzed with both units rented out to know whether the investment is sound, even though one will be my primary residence:
https://www.biggerpockets.com/calculators/shared/2...

Please let me know if I am missing something or if these other investors are offering too much. Thanks again and I look forward to hearing from you. 

Regards,

Michael

[Michael Abate]

Thanks for all the helpful information. I do plan on living in the property, but I also want to know that when I plan on moving that it is still a sound investment. From your feedback, that doesn't seem to be the case with this one. Property taxes in this area are high and while they seem like a mistake, that is the real number. My insurance number came from my agent in the area so I think that will be accurate. 

Also, great point on the PMI, I missed that in my calculations. Thank you all for your help on this one, I thought I was missing something significant in terms of my offer but I'm glad to hear that all of you have your concerns on it as well. Really means a lot that you took the time to get back to me so quickly.

Thanks again.