My first deal (maybe). Any thoughts?

[Marty Gold]

I'm looking at a college rental property close to my home. I have made some calls and left messages today as I'm searching for PM quotes but I know a handyman so, since I live super close, I may try to do this myself (I have read many horror stories, that's why I'm also getting PM quotes). 

I'm hoping someone could help me analyze this deal please.  It's a home built a bit more than a century ago.  Im waiting to hear when the roof was last replaced but the furnace was replaced in 2015. 

The property is already rented for the 2017-18 school year.  6 bedroom place which collects $24,000/yr collected in 2 equal lump sum payments. 

Expenses are:

$1,684 in Taxes last year

$892 for Instance last year 

$388 maintenance last year 

$1,972 in Utilities (id pay Gas, electric, sewage, water)

I haven't yet purchased a property so I welcome suggestions as to how much I should save for maintenance as well as CapEx.

The asking price (not yet negotiated but assume I pay full price) is $187,000 and I won't need to do any repairs Day 1. I will put 25% down. Assume 4.25% mortgage rate, which means $690/month mortgage payment. 

Based on these numbers it looks like I will collect $24,000 and my expenses are $18,152 (not including closing costs, capEx and anything else you can see which I may have missed).   would anyone be willing to analyze this deal for me please?  Thank you 

[Bob Okenwa]

@Marty Gold

If you haven't already done so, you should use the rental calculator on BP to get a more detailed look at the numbers you provided. Not sure how you came to 18k in expenses though. As far as maintenance and repairs go, most people would estimate between 5% and 10% a month for each depending on the age and condition of the home. The 50% rule says half of your monthly income will go towards expenses so you should expect around 1k a month in expenses. Depending on how aggressive or conservative you are with your numbers, you can expect somewhere near $250 a month (conservative) to $450ish a month (less conservative) based on the numbers I ran. Of course you'd want to verify this yourself, that is why I suggested using the BP Rental Calculator.