First Deal Sanity Check

[Harrison Sharp]

Hello BP,

I'm thinking about pulling the trigger on my first real estate purchase but want to have a second or third set of eyes to make sure I'm not missing anything big. I'm currently 25, living with my parents rent free, and make around $60k per year working at a B4 accounting firm. My plan was to buy my first property while I'm living rent free so I've got a cushion in case something goes wrong and then once I get a handle on landlording and save up enough cash for a second purchase, house-hack through an FHA or low % down conventional on a duplex in my area. My criteria for my first purchase is a buy and hold cash flow play getting more than $200 per month, greater than 10% CoC return, under 100k purchase price, B and C class neighborhoods. The area i'm planning on investing in is 45 minutes away from where I live now.

Here are the numbers on the property I'm considering:

https://imgur.com/a/kxHRR

Rental Income - I looked up various comparables listed on Zillow and craiglist to the property and found the rents ranged from 850-1250. I went with a conservative $900 and also posted a fake craiglist and Zillow ad yesterday at $900 to see if it would generate any interest and I've already got 3 people asking to go see the property.

Vacancy - Estimated 10%

Property Taxes - estimate of $770 yearly taxes pulled from the Sherman CAD website for this property

Property Insurance - I estimated $1500, am waiting back for a quote from an insurance agent that I will get back at some point today.

PM Fee - I will be self-managing but included an 8% fee in the model based off of the PM my family uses and the fee he charges per unit they have.

General Maintenance - 10% estimate

Mortgage payment - I have estimated this amount from a lender I have been in contact with and based off of my credit score and other information.

Capex - 8% of rental income I will set aside and reserve but I've also got other cash in the bank to take care of any other unexpected large items in the first year or two that come up. Will possibly refine this once I go look at the property and see how much longer till the bigger items (roof/HVAC/heater) need to be replaced.

Am I missing anything here? I found through my realtor on MLS

And as far as next steps go - I plan on going to visit the property with my realtor to see if the location is okay, submitting an offer, and then getting an inspection done with a contractor there so I can see if anything is wrong with the property and how much it will cost to fix. Anything else I'm missing?

Thanks in advance for your time/help!