Property Analysis for First Rental, Help a Noob Out!

[Matthew Masoud]

Hello Bigger Pockets Community,

I've been looking around the community for a while now and listening to the podcasts. I finally decided to take some action. I got preapproved and start placing offers. My first few offers fell through and I finally landed one that's in contract.

I'm nervous as hell so I thought I'd share the details with you guys and see if I can get some reassurance or at least some advice.

It's a 4 unit property for $150,000, fully occupied. One studio ($375/month), one 1-bedroom ($515/month), and two 2-bedrooms ($695/month each)

Total gross rent: $2,280

Morgage ($550) + Tax ($300) + Management ($200) + Repairs & Saftey Fund ($200) = $1,280

So from my understanding, I'm going to make about $1,000/month

Am I missing something? I know some things out of my control are possible like evictions or misc repairs.

I'm also kind of nervous because the building was built in 1898 but the two 2-bedrooms have been completely renovated.

Also, another thing that is making me nervous is their counter. I placed the offer for $150k and they countered with this.

"Hi Jared, Spoke with my partners and here is our response. 

1. We added a 48 hour period directly after full execution of a contract, during which you and/or your clients need to walk through the property and determine if you are going to move forward. 

2. We shortened the Inspection period to 10 days and the post-inspection period to 4 days 

3. We changed the tax proration to short (very heavily traditional in Montgomery County) 

4. We added an assessment that Buyer's will be responsible for after closing on the property. It is a sidewalk assessment that was revealed in the RPD and runs through 2027 at approx. $200 annually. 

5. We eliminated Dishwashers from the inclusion list, as there are not any dishwashers belonging to the Seller. We have left our counter offer open until 8:00 PM this evening. Please let me know if you have any questions. Thanks, Kevin"

I told them shortening the inspection period was a no go so we were able to negotiate to 7 days. Does anything in their counter offer seem alarming?

I would like to thank the community to getting me to where I am today. I wish you are all doing well during the pandemic. Have a great day!