First Investment in Rochester, NY
Hey folks, I've been on BiggerPockets for about a week and I am amazed at how many people are reaching out to offer advice. Thought I might post a summarized plan for my first investment in Rochester, NY... love to get some thoughts from the pros!
FIRST INVESTMENT PROPERTY GOALS & CRITERIA
GENERAL
Implementation Date: January 2017
Strategy: Long-Term Buy & Hold - passive income, 2-year live-in
Type of Property: Multi Family (duplex)
Location: Rochester, NY (Park Ave Area, ABC Streets, or comparable market)
COST & FINANCING ASSUMPTIONS
Type of Financing: FHA Loan
Downpayment: 3.5% ($2,800)
Interest Rate: 3.75%
Max. Finance Amt: $77,200
Max. Purchase Offer: $80,000
Improvements Budget: $7000
Est. Closing Costs: $3000
Max. Cash Outlay: $13,000
REVENUE CRITERIA
Average Rent: $1500
Target COC: > 10%
Target Cash flow (monthly): > $100
EST. EXPENSES (ANNUAL)
Vacancy: 10%
Property Tax: $5000
Property Mgmt: 10%
Maintenance & Repairs: 5%
Advertising: $100
Landlord-paid Utilities: $800
CAPEX: 8%