Offering on my first real estate investing deal!
I submitted a written offer today for a property in a neighborhood close to where I live.
Here are some of the details, please let me know your thoughts, however harsh they may be...
Purchase Price: $295,000 (Seller is absorbing 4% for closing costs)
Down Payment: $0
Gross Potential Rents: $24,000/yr ( I feel that these numbers are a little low for the area)
Expenses: (Let me know if you think I may be missing something)
Property Tax: $3,800/yr ( I may be exempt in Oregon for have a disabilty from my military service)
Repairs/Maintenance: $2,400/yr
Insurance: $600/yr
Utilities: $2,200/yr
Total Expenses: $9,000 roughly per year
Net Operating Income: $15,000/year
Debt Service: $16,500/year (roughly)
I am trying to get the price down to $285,000 after my walkthrough and inspections. If I get that my numbers look better. Is there any advice that you recommend for me before I proceed?
These are rough estimates as well, so they can be lower or higher depending. I plan on 'house hacking' and using this as my residence for 2 years before I start investing in another property. This is the best deal that I have found in a 30 mile radius of my work. Everything is so much worse, number wise, when looking around my area.
If there is any insight as to what price I should try to negotiate or what other type of deal I should strike with the seller.
Thank you for your time in advance!