Thinking about purchasing my first rental property

[Joseph Cohen]

Someone recently came to me with what seemed to be a nice deal. It’s a multi family with 3 units and 3 floors with a basement for the laundry etc. This property is located in Harrison NJ which is a growing neighborhood due to the easy commutes it provides to Manhattan. I therefore feel that this area will continue to appreciate its capital. This property needs some work in order to get some better rents out of it. My estimate is if I put in 30k I can up the current rent from 1000 to 1200 - 1300. The seller bottom line is 400k. 425k. The NOI on this property I calculated it to be about 25k after factoring all expenses (like taxes - 9250, insurance - 2200, water - 2000, a 5 percent vacancy factor and a 6 percent maintenance factor. Tenants will be paying there own utilities). Just a little nervous going into this for a few reasons. 1- I’m a 23 year old and I’ve never done a real estate deal before. 2- I’m not sure if this deal is actually a good deal or not? (Would love to hear some feedback and advice) 3- I live about 45 minutes from this property and wonder how much a landlord must actually be by the property. (If any landlords are reading this, please let me know if you think this is a deal breaker) I would really appreciate anyone who can give me any advice if you think I should just pull the trigger or not?