Out of state property deal

[Jimmy Hong]

Hello everyone,

Its been a pretty busy week, I'm closing on my first rehab here in Orange County and I'm purchasing an out of state property, contract signed this morning. This one will be a buy and hold in Memphis, TN.

Numbers look like this:

Purchase price $122k
Conventional 20% down and financing 80%

MAIN HOME: 4 Bedrooms, 3 Full Baths, Living Rm, Dining Rm, Hardwood Floors (Currently rented for $ 1,300 per month - Current tenant for nearly 2 years)
Updated Electrical Wiring
New Heat and Air Conditioning
New Exterior Paint
New Interior Paint
Refinished Hardwood Floors
Remodeled Master Bathroom (12" Tile)
New flooring in kitchen and dining
New Light Fixtures throughout
New Doorknobs throughout
New Blinds throughout
Large Updated Kitchen

APARTMENT 1: 2 Bedrooms, 1 Bath, Full Eat-in Kitchen, Large Living Room
(Currently Rented at discount for $ 725 per month to same tenant in 1 Bed Apt (Typically rents $ 785/ mo). Same Tenant for over a year.
Each bedroom features its own sink and vanity area. This apartment features New Central Heat and Air Conditioning, paint, carpet and tile in the bath and kitchen.

APARTMENT 2: 1 Bedroom, 1 Bath Efficiency w/spacious living area & large closet This apartment features New Central Heat and Air Conditioning, paint, carpet and tile in the bath, kitchen and entry.
(Currently Rented at discount for $ 505 per month to same tenant in 2 Bed Apt (Typically rents $ 545/ mo)

GARAGE STORAGE: 1 and a half Car Garage can be rented for storage for $ 50 per month. Currently rented to Apartment tenants.

Gross Schedule Income $2,580
Less Vacany Allowance (3%) $77
Gross Operating Income $2,503
Less Operating Expenses
Insurance $65
Taxes $150
Utilities $550
Repairs $100?
Total Operating Expenses $865
Net Operating Income $1,638

P&I of $97,000 at 5% interest (investment rate) will be around
$550.

What do you guys think? Thanks in advance.