Is this a good first REI deal???
Okay I found a property that fits the criteria of my REI plan. It's in a very desirable neighborhood that gets great rental income. For my first investment property I didn't want to buy super cheap in a ghetto area, so I knew I'd have to be paying more up front than it sounds most people do on this site but think long term will pay off. It is a 3br/2ba SFH that was listed under $200K b/c the listing agent knew it would generate a ton of interest quickly. They are only taking offers through weekend. My agent and I both agreed that we need to go in at $222,500 w/$4K seller concessions. Houses in that area (although with larger lots) are going for $300K plus. This is also an unusual lot in that it is land locked with no street access, which brings value down from others. I posted a fake ad on Craigslist to see if I'd get response at $1700/mth and had about 20 responses within a couple hours. I think I could raise to $1800 or more and easily still find good renter. I've done a spreadsheet including all estimated costs and out of pocket expenses and look like I could cash flow around $300/mth which I figure good for first investment and I know place will hold value. What do you guys think? Does this make sense? Anything I need to be careful of here? Owner has lived several years and it is in very good condition. Only thing I will be sure to check out thoroughly is roof as it is a flat roof and they don't know how old. Any advice y'all can give would be much appreciated!!!!