First Rental deal analysis feedback

[Julio Gonzalez]

Good day BP Team,

I am new into Real Estate investing and considering to buy and hold a rental property. I have been looking for apartments below 150 and from all of them found the below deal the best option but wanted feedback from the BP community.

Here are the deal details :

Purchase Price: $129,900

• Bedrooms: 2
• Baths: 1 full, 1 half
• Built in 1974
• HOA Fee: $228/mo
• Cooling: Central
• Heating: Forced air
• Last sold: Mar 2016 for $105,000
• Taxes (2015): $1341/yr
• Maintenance incl: Water, Insurance, Trash and sewer

FEATURES

Basketball Court, Doorman, Elevator, Flooring: Tile, Garden, Patio, Pool, Porch, Tennis Court

Description:

The perfect investment property! This captivating 2 bedroom 1.5 bathroom Apt (Converted bedroom to a 2 bedroom apt.) includes a large master suite with a huge walk in closet, large bedroom floor layout, and tile floors throughout located in the gated community of Coral Gate East Condo with pool and playground views from the screened balcony. Amenities; 24 hr. security, clubhouse, pool, gym, tennis courts, basketball courts and a day care facility. Unit is rented for $1275 with a 9% CAP Rate!!

Deal Analysis done by myself:

Expenses: 

Assoc: $228

Taxes:  $112/month

Maintenance: Assuming Insurance of $120/month, Assuming Sewer+Trash+Water = $50/month

Mortgage monthly (20% down payment and Interest 4.2%): $509

Monthly rent: $1275

Monthly cash flow: $256

Please provide feedback and look forward to start collaborating with the BP family. Thanks in advanced.

[Charlie Price]

Julio Gonzalez if I were you, I'd pass on that one and keep looking. Certainly you could find a better deal than that. My humble advice would be to get your financing all lined up and if your new to the game, find yourself a decent realtor that handles investment property. Meet face to face with him/her and let them earn their commission and bring you a good deal. Get it under contract with some kind out clause like an inspection or whatever. Then if all checks out close and your now on your way!