Just closed my first deal. Thoughts ?

[Elton John]

Side by Side Duplex Purchase Price $365K

B+ area

Negotiated roof to be replaced and property needs about $10k in cosmetic work.

Income potential $3.7k

PITI - $2.6K

Rent Vacancies - $185 (5%)

Repair & Capex - $460 (12.5%)

Trash, Sewer, Cold water -$100

NOI - $335 monthly or $4k annually for CoC of 6.7% if both sides rented.

I plan to live on one side, eliminate the rent I was paying of $1,600 and rent the other unit for $1800-1900

The deal does not look bad, but I’m just beating myself a bit as this was an off market deal through cold calling a motivated seller and I could have potentially lowered the price to $350k with some better negotiation. Just got too excited and agreed on $365k. Was too tires of renting and having all my offers beaten by all cash investors

[Elton John]

Quote from @Andrew Postell:

@Elton John did you purchase this property with a loan?  If so, what did the property appraise at?

They appraised it at $370k, however, I believe that appraisals stop evaluating once they reach the target. If i bought the property at $380k, it is likely they would have appraised it at the same value (380)