Getting Started in Real Estate Investing
Thanks to the help found on BiggerPockets I am finally trying to get started in real estate investing after wanting to do so for 25 years! I've read and studied a lot and have been analyzing deals using the calculators. I have found a relative small mobile home park with 9 units with room to add one more unit. With the 9 units, it generates $5,433 in monthly income. Calculating with a selling price of $300,000 (the list price is $345,000); a 20% down payment and a 30 year amortization loan at 7% , the property will cash flow at $1674 per month. Adding the extra unit will obviously increase the cash flow to potentially over $2,100 per month. Half of the units have had a good rehab performed over the past year so there can be some additional rehab done on the remaining units to increase the overall value. I have contacted numerous lenders but most have a minimum of $1 million for mobile home parks or they have to have 75% LTV which I can't hit due to lack of funds. The seller is rejecting any or much seller financing at this time ( I have not presented a real offer on paper at this point). My goal is to build a portfolio of buy and hold properties that will produce a passive cash flow of $10,000 per month within 15 years.
For my learning purposes, is the above deal a good one or a bad one? Not including things like physical property inspections, septic systems, area survey, etc. what else must I know before proceeding?
Thanks to all for the help and continued education.