[Calc Review] Help me analyze this deal

[Jim Peckey]

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*This link comes directly from our calculators, based on information input by the member who posted.

Hello folks,

My wife and I are new to real estate investing and are looking to buy a primary residence, as well as invest in our future by building a real estate investment portfolio.  We're quite fortunate in that we have zero debt, I work in IT and the wife works in Education.  We have approximately 20k in savings and trying to do our due diligence in analyzing good "buy and hold" properties.

We currently live in the Buffalo, NY area and recently came across a triplex for sale at $85k.  

While the triplex is currently fully rented out, grossing $1,725 per month in rent, we would be looking to occupy one of the units for at least 1 year, primarily as a way to reduce our down payment from 25% to the 10% range and keep more available capital on hand.  With us occupying one of the units, the total gross rent from the other 2 units would be $1,065 per month.

I've used the rental property calculator to plug in some numbers and trying to determine if this is a good buy, long term.  With us living in the property, we're looking at $62 monthly cash flow and a 7.10% cash on cash return.  We plan on moving out of the property in 1-2 years, and without us living in the property, we would be adding another ~$700 to the rent roll as well as property management fees.

We're thinking this looks like a good deal from where we currently stand, especially if we can purchase the property for less than the asking price, but we'd very much like to run this by our more experienced peers and make sure we're on the right track before we jump into our first investment property.

Feel free to ask us any questions, I'm sure we've missed a thing or two in our analysis.

Thank you very much and cheers!