My first property offer. Tell me what you think please.

[Jesse Poll]

I just put in my first offer yesterday. Here it is. This property is not on the market yet. They will be asking

Asking $149k
Offer $140K
Total PITIMI $1050
To get this property I will probably have to pay full price.

Here are the rest of the numbers.

4 plex FHA loan so I will occupy 1 unit.
All leases in place.
Rents from the other 3 are $1850
Figure for monthly maintenance $200
Cash flow after expenses $600
This is not actually income. It will be banked to support future property expenses.

My purpose for this property is to gain experience and have a second home for free.

I was not sure how to evaluate this property because I live in one unit rent free.

I will manage the property myself and do most of the maintenance since I will be on site.

One other concern I have is that I will have to terminate one tenants lease within 60 days of purchasing the property.

I do not like this fact as they are all pretty new leases. Also I will contact an attorney to find out legalities with this.

To make up for terminating there lease I am thinking of giving them 60 days notice and free rent for those 60 days plus refund there deposit in full for the inconvenience. I am not sure about this part. I just want to make sure that it is a win-win for everyone. My thinking is that I am not counting on rents from that unit anyway and they were not expecting to have to move.

I would appreciate your feedback on this situation.

Thanks
Jesse