Could use another set of eyes of the house I offered on

[Teho Kim]

As a beginner investor I could really use some extra opinions and see if I should be taking the plunge on this SFH.

I don't know if it was a mistake, but I submitted an offer and counter offer on the property.

$138,000 / 25% down payment

year built: 1967 

3 bed, 1.5 bath, 1 car garage

1316 sq ft

B location in Indianapolis ; projected vacancy: 5.4%

No/minimal rehab

projected rent: $1250

taxes: ~$2000/yr

My calculations yielded around $70/month for cash flow. I know that's not much, but should I wait for a better deal? Looking around and listening to podcasts, it seems like the first deal is just all about getting the experience.

Really appreciate any insights.

[Dennis M.]

@Sam Hopkins

That sounds fine and good until the tenant leaves or dies and now that 70$ positive turns into 1000$ Negative real quick . Or a 2500$ furnace / hvac goes out then you get nothing for the next three years ...Or a 10,000$ sewer line needs torn out then he can wait 12 years to break even ... if his taxes go up ( which they surely will) 800 bucks , He breaks even . Now some might say “ yeah but the tenant still pays the property and it appreciates over time “ well you could have that anyway AND get cashflow