First time home buyer - deal analysis
I just submitted an offer for a home for 310k with 10k concession to cover closing cost. It is a two family apartment. 1 bedroom first floor and 3 bedroom on the second. Going off of Vouchers for Section 8, 1 bedroom goes for 1250 and 3 bedroom goes for 1800 in monthly income. I am using an FHA loan with 3.5% down payment. Taxes are 6k. Estimated Mortage, PMI, Taxes, and Insurance comes to about $2,300-$2,400. With 5% Vacancy and $80 water/sewer monthly bill, my cash flow is about $420.
Does this sound ideal? I'm getting cold feet because I didn't bake capex and 5% maintenance repairs. I know PMI goes away after 20% equity is reached. Too add, it's a block away from NJ transit into the City and next year a ferry service opens up in town. The house is completely remodeled and no work is needed.