First Property - Looking for Analysis Feedback

[Blake Lawson]

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Hey Everyone - 

I've been sitting on the sidelines for the past year learning and absorbing as much information as I can through investor friends and BP resources. I came across this listing in the town I grew up in and am looking for additional insight as this would be my first real estate deal. The place is older (built in 1912) but the interior seems to be in good condition with no obvious plumbing or wiring issues. The vinyl siding on the outside has some holes and the roof is sagging, both of which may be contingencies for either financing or insurance. I am working with a local realtor I know (and trust) and am running the math to see if this makes sense for a first time investment. I am planning on conventional financing through a local lender and am analyzing a few other properties before I get pre-approved at which point I would move forward with an inspection on this property. 

Thanks for the help! 

Blake

[Jacob Sampson]

I would agree with @Ashley Kehr, although I would go higher than 5%.  For me I just do 30% for Vacancy, maint, and capex.  I'm not a fan of property managers so i don't have that expense.