First investment review

[Anthony Foret]

Wife found the podcasts for this site last week and I have to say this place is great. I've been reading posts for the last few days and as my first post I would like to ask for opinions on my upcoming first investment.

http://www.usamls.net/houmalahomes/default.asp?mls_number=111989&content=expanded&this_format=0

2 bed, 1 bath

Starting asking price $65k (their appraised value)

Offered $62,500 (The best finance rate I found had a minimum financing of $50k.)

I had a cousin that is a general contractor inspect the house and found the maximum cost to get it rent ready was $4k and 4-5 days although I plan on doing some of the easier work myself (easy Sheetrock work, pressure washing the old paint off the outside, ext.) to help bring down some of that cost.

(My finance company is asking for an as repaired appraisal so I will see the value after the repairs are done.)

Monthly note including taxes an insurance: $407

I can cover the note myself with no problem if need be although that is obviously not what I'm hoping to need to do.

Expected rent $750-$850 as a BASIC 2 bedroom apartment goes for $700-$775 and high end ones for around $1100. This is also based on the side of town and being in a working class neighborhood.

Planning on a separate checking account with a starting balance of $2-3k and let it build up for a year or two to cover major expenses.

Property is less than 5 min drive from my house.

If any more information is needed to give me an opinion of the deal just let me know.