Is this a good first investment property?
I made an offer that was accepted on 407 Cambridge in Worcester. It is new construction. I got it for 250k. I have a partner who is investing with me. We are doing 25% down total on a 15 year mortgage. We both live out of state. This is my first property. I was told I can rent it out for $2000 by my realtor. He showed me other units that were completed in this complex that were rented out for $1950 and $2000. A 15 year mortgage with HOA & property taxes gets me to approximately $1780 monthly expense. I live in NJ and was not finding anything like this near me. Would greatly appreciate feedback!
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No, it is not, @Amit Aggarwal. This will not cash flow. You're not accounting for insurance, vacancy, repairs and CapEx (low now, but will grow over time), or management. My guess is that you lose ~$400/month on this deal. You might break even if you go for a 30-year note. Either way, I would never do this deal.