First deal is closing today! Let me know how you think I did!
I am very excited because my first investment property is set to close today!
It is a cash purchase, total price of $29,850 (market value/comps 45K, my more conservative estimate is closer to 38-40K) for a 2/1 recently updated (December 2012) and tenanted with new 1 year lease (this was important for me as an out of area investor). Seller agrees to continue PM for first 6 months with option to stay with his PM or find a new one after. Rented for $700 per month and tenant pays all utilities.
So deal breaks down like this:
Total Price : $29,850 Downpayment/Cash Invested : $1500
Amount Financed @ 6% using HELOC: $28,350 ($170/month P+I)
Taxes : $125 / month Insurance : $42 / month Vacancy/Maintenance: $81 / month
Total Expenses/Month (PITI + Vacancy/Maintenance) = $418
Cash Flow = $282 (first 6 months PM included in purchase so no extra, after 6 mo. will be about $70 less, so closer to $200 CF)
My plan is to refi the property after 6 months to get a 75% LTV cash out refinance to get a better rate and be able to replenish my HELOC for other properties/future investments.
Let me know how you guys think I did on this "hopefully soon to be" first deal!