Newbie trying to buy rental property

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Hello. i am newbie trying to buy first rental property using DSCR loan. i have been searching clevelend area for three monthes and ready to buy. What i found myself is considering too much to analyze deal?

i put 10 %PM, 10% maintenance cost, 5% Capex , water/sewer $80 and 4% Vacant ratio. Since this market has houses built in 1900 to 1950, there are too many things come to think. .Roof, Furnace, Electricial, wate tank and so on. so I used all the knowledge to analyze deal. and i am now little confident myself on these.

but now i saw the audit report from county, which shows construction quality of the house, which makes me more complicated. I was comparing two deals ; one is poor, ans the other one is average.

Is it really necessary to think about constructoon quatity for old house if I want hold the house for long ?

Am i too conservative when I analyze the numbers? 

Please write me any comments.  Thank you so much

[Jeff M Collinsworth]

Hey there,

I'd say you’re not overanalyzing, you’re just early in the learning curve, and honestly what you’re doing is a good sign. Your assumptions are solid and slightly conservative, which is exactly where you want to be with older Cleveland inventory, and construction quality absolutely matters because in homes from 1900 to 1950 it directly impacts how often things break and how expensive things are to fix. The trap you’re running into is trying to eliminate all risk, which isn’t possible, so the goal is to either price the risk into the deal or avoid deals where the risk is unclear.The fact that you’re thinking this way means you’re closer than you think, and at some point it just comes down to trusting your conservative model, getting a solid inspection, and being willing to accept some level of uncertainty.

Take care