Closing my first deal. Good deal or bad deal?
Hi I’m in the Winston salem market and Im working on closing a deal on a 2 bed 1 bath for 23,500. Plus due diligence and inspection it will come to 25,000. I plan on putting 10k of my own money down and financing the 15k needed to close.
The property is valued at 20k has a tenant inside that rents $400 per month right now. My analysis looks like this.
Vacancy 25 monthly
Repairs 25 monthly
Cap ex 40 monthly
Taxes 20 monthly
Insurance 15 monthly
Operating costs 125
Mortgage depending on what kind of financing I do will be between 1 and 200 per month.
Looking at spending 325 per month on the property for a $75 cash flow.
My intention is to do hard money lending and pay down the principal within a year to pay off the property and use the equity for the next deal.
It’s my first property that I’m close to closing on and I’m very eager to get started just wanted to hear some opinions about maybe better financing options or whether people think this may be a good deal or not.
Thank you for input