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Updated over 7 years ago,
My first deal (maybe). Any thoughts?
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