Am I making mistake with purchasing this 8-plex as my first prop?
This is my first Multi family purchase and I am very exited. As the result I maybe missing something obvious, so every suggestions would be very valuable.
This is an off market property which owner is tired of managing himself (he is in mid 70). He owns it free and clear.
Purchase Price: $470K
Down: $230K (using my HELOC), and Seller finance on the remaining $230K.
Expenses (Monthly)
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Mortgage: $2,440
Prop Tax: $1,333
Insurance: $335
Garbage: $100
Grass/Snow: $200
Water/Sewer: $605
Electric (common area): $50
Vacancy (5%): $350
PM & Repairs (10%): $700
TOTAL EXPENSES: $6,113
Income (Monthly)
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Monthly Rent: $7,200
no additional income
I am planning to refinance the property 1-2 year after the purchase and pay off the HELOC and Seller.
Property currently values around $650K
Let me know if I missed anything, or anything I need to pay attention to.
Thank you!