Am I getting in over my head?!?
Help!
I am a newb when it comes to real estate investing. A family member came to me recently, knowing that I am looking to get into REI. He is selling a property in a rural area about an hour and a half northwest of Detroit. This property is on 10 acres and has two duplexes on it. His original plan was to develop the other 8 or so acres, but is getting older now and doesn't want to put in the effort of developing the properties. Here are some numbers on it,
Revenues:
Two upper units rent: $710/month
Two lower units rent: $660/month
Each unit has an external garage that rent: $50/month
Total - $2940/month
Expenses:
Taxes: $6140/year
Insurance: $1200/year
Utilities:
Well and septic.
Electric, propane gas and cable (available @ tenant's expense)
It was completely renovated in 2001. New roofs, new windows, new 90% efficiency propane forced air furnaces, new sinks and counter-tops and new carpet throughout.
Sale price: $275,000
Land contract available, with appx. 40% down
Is this something I should look into? Are there other figures that I should know about?
Thanks,
Steve