Week 16 | The butterflies

It's that time. Our offer from last week got accepted. The details of the deal below: 

Purchase price: 120,000

ARV: 135,000 (we're assuming this based off of the original offer price. There aren't many duplexes recently sold in the area. There are two literally next door but those were purchased at 30K in 2009 and renovated like this one)

Closing: 2,500 (assuming a 5,500 closing since the seller is contributing 3000)

Repair: 5,000. The property seems in good shape with some cosmetic work needed. On this deal the seller asked that we made an offer prior to seeing it because it's tenant occupied. I guess they were looking for serious buyers. This seemed backwards to me, but we went ahead and made an offer site unseen with an inspection contingency.

Monthly

Rent: Both units currently rented at 700 each

PITI: 680 (assuming $100 home insurance)

Other expenses considered: Vacancy 75, PM (even through self managing) 135, CapEx 135, Repairs 75

Total: 1100

Assumed cash flow: 400

I'm so privileged to have BP.  Once we got under contract, I sent this information out on a new discussion thread and several people gave very helpful feedback.  Additionally, I have been able to build on a new investor relationship at our local REIA.  Curt gave much advice about this deal assessing the rental market as well as critiquing the numbers I came up with.  Unfortunately, the reviews are somewhat mixed (which makes me more nervous).  Some think that the ARV to Purchase price is too thing. Others think my rental income will be above what I anticipate.  Arghhhh!!  The good thing is that I'm confident in the cash flow numbers. We are settled with the fact that if God wants this deal to happen, it will be within our requirements.  Tomorrow we view the property's inside for the first time.  Can't wait!  This property has tenant already living there and should be cash flowing right off the bat. My goal is to get as solid as I can on market rent and ARV; and to verify no major repairs needed.  Fingers crossed.  Until next week.....