Check My First Deal!

[Kendall Short]

Alright guys, I'm going to check this place out on Wednesday and most likely put an offer on it after that. I went to see it a few months ago, but thought I wasn't ready for such a "big" deal at the time. Currently waiting on my pre-approval letter. 

The deal is as follows:

Specs: Four units, two side-by-side duplexes. All units are 2x2 with a basement that can be utilized as an additional bedroom + a 1 car garage. I will occupy one of the units.

Asking: $310,000, on the market for over a year

Offer: $260,000 hoping to negotiate down to around $280,000 - $290,000. Ran the analysis at $290k with around $5000 closing costs and inspection fees, but plan on having the seller pay for CC if they don't budge on the price.

Would like to put 5% down, but lender asked for 10% for them to finance since my commission income last year isn't as pretty as this years. I ran the deal with 7.5% down on the BP calc.

FINANCIALS

Down Payment: 21,750

CC & Inspections: 5000

Cash Needed: 26,750

Monthly Expenses

P&I: 1453/mo

T:  208/mo

I: 115/mo

PMI: 175/mo

PM: 232 (I will attempt to self-manage for as long as possible)

Vacancy @ 5%: 116/mo

= $2299 monthly payment with PM, $2067 without PM in place.

I figure cap-ex and maintenance will happen, and we don't know when.. as something could happen day 4 of owning the property. So I will have cash reserves set for the property.

Current Rents

Unit 1*: 615 Unit 2: 775 Unit 3: 775 Unit 4: 600 (Will occupy this one)

= $2165 monthly rent

* I plan on upping this to 775 once in my possession, and eventually increasing all of them to 850 once it's turnover time. <-- any advice on increasing rents would be great. 

Future Rents

Once I move out and all of the units are rented 

Unit 1: 850 Unit 2: 850 Unit 3: 850 Unit 4: 850 

= $3400 monthly rent

Let me know if this sounds like a good first deal to you. I am always open to advice and constructive criticism. Thanks all.