Newbie about to make a jump into Investment property - Good idea?
I'm about to make an offer on an investment property and making sure this is an attractive investment. Property is a 2 story 4 unit apartment building near a college campus. Asking price of 180K and is fully rented ($700/month avg or $2800 total). I got my approval letter to purchase with 25% down (4.375%/30yr fix). Building has new roof, new windows and a new staircase. 3 of the 4 units completely renovated from head to toe (everything, even the receptacles and switches). I don't know everything about the 4th unit but it rents about 50-75$ cheaper than the renovated units. Yearly expenses stated are water/1800, trash/360, area light/240, lawn care/900, dumpster/156, Insurance/1920, taxes/1536 for a total of $6912. Management company 8% - 2688/yr, New/renew lease fees (2 new/ 2 rew) = 900, Maintenance at 25/hr is a wildcard so I used 48hrs a year for 1200. Loan @$700/month. Total operating expenses = $20,700 - Total rents = $33600 for cash flow of $12,900/year. Am I missing anything to consider? Any advice is appreciated. I can't think of anything else.