Am I cutting it close on this buy/hold property? First deal.

[Audrius Pauliukonis]

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

[Jaysen Medhurst]

@Audrius Pauliukonis, the first red flag is that this property has been on the market and pending sale 4 times since 2015. Each time the sale didn't go through. Why? Why did 4 buyers walk away? Most recently in July of 2017 for $115k. That's a good place to anchor your negotiations.

Regarding your analysis:

• Include an initial-repairs budget. There's always something!
• Looks like all the units are on 1 electric meter and heat/HW system. The fuel bill might be reasonable, but electric is probably way too low. Ask to see a T-12 from the owner so you can see all the expenses for the past year. P.S This may be an opportunity to add value, depending on how much it would cost to split out the utilities.
• Repairs and CapEx is low. Figure 15% combined at least. This is a 90-year old property, on the water, with a flat roof.
• Is this in a flood zone? Is flood insurance required?
• Any lawn care costs?