Crunching some numbers and thoughts on possible first deal...

[Mason Snyder]

I'm still looking for my first deal and I think I may have found it, so once again I'm turning to the BP community to help me make sure I'm making a wise decision.

Here's the situation:

My aunt is moving out of the 3/2 house she's owned in Simpsonville, SC for 11 years. She owes $107k on it. According to Zillow (I recognize this may not be the most accurate source) the house is valued at $132k. Her 20 year old daughter (my cousin) lives in the house and wants to stay and pay rent. She also has one roommate moving in. She's planning to pay $300/mo in rent + utilities (minus water, sewage (appx $50/mo) ) and, if I purchase this house, I plan to charge the second roommate $400/mo. I also plan to fill the 3rd BR with another tenant and charging $400/mo -- so $1100/mo total.

Bc it's investment property (I live out of state) I'm required to put 20% down. My aunt is not placing a premium beyond what she owes - so I'm getting it for $107k. If the Zillow figures are accurate there is $25k of equity which I'm planning to have my aunt write a letter and gift to me that I will use as the down payment on the house. Property taxes are appx $669/year. HOA's are appx $200/year. It's in a great, family friendly neighborhood with a pool and tennis courts.

(Side note - the house is located in my hometown and I'm very familiar with the area. Also - all of my family and friends will reside so I have "boots on the ground")

The A/C went out recently. She has an American Home Shield membership that she believes will cover the repair (after a small deductible). The linoleum floors in the kitchen could also stand to be repaired. These are the only issues I know at this point.

Outside of the A/C I don't plan to make any major renovations while the three tenants are living there. Once they're out I will and will adjust rent rates.

Based on the high level information I've provided - do you think this is a good deal?