Newbie idk if this is a good first deal
I've never had a mortgage before. I can maybe cover 20% down but I'm hessitent cuz I'd be pretty broke I'm thinking maybe I should keep saving before I buy my first property.
There's a 3 unit the bottom is a grocery store it's been occupied 10 years. $900 per month current rent
Upstairs there are 2x 2 bedroom apts. $600 per month each
Total: $2100
Listed $110,000
Tax: $166\mo
Insurance$176/mo
Utility's; $100/mo
Lawn/snow care: $50/mo
Vacancy:$100/mo
Repairs: $100/mo
Capex: $100/mo
Property management: $200/mo
Mortgage$462:mo
Total expense:$1443
Monthly cash flow: $657
Annual cash flow: $7884
$22,000 down
Cash on cash return %35
I guess that's what the current owner pays in insurance kinda kills the deal a bit. Maybe because it's commercial it's higher then normal.
I worry about the store front if the current tenant moves or gos out of business it could be vaccant a long time. It's a grocery store and walmarts not far so idk how it stay in business.
I'm really leaning on continuing to save money and wait