I recently came across a property that I would like to purchase as my first property but I am having trouble finding the "working number" (aka the number that makes the property a positive purchase). I am new to REI and I think I ran my numbers too conservatively, so I am asking 1: if someone else could run the numbers using better estimates than what I used or tell me if the numbers I used were good? 2: How much effort is too much effort when trying to make the numbers work? 3: what is included in the P&I
Details of property below:
Listed Price: 195,000
Price I would like to offer: 160,000
Assumed closing cost: 2500
Estimates repairs: 6000 (kitchen is very out of date and so are the bathrooms)
No down payment
4.625% loan interest
Amortized 30 years
Should be able to rent at: $835-$875 per side after renovations
Lawn Maintenance: $80
Tenants pay water and electric
Expense increase over time: 1%
Income increase over time: 1%
Property Value increase over time: 2%
Management fees: 10-12%
Sale fees 9%
Each side has a single car garage
Rent estimates came from apartments in the area with similar number bed/bath
Would be running property as a house hack that would transition to full rental property in about 2 - 3 years
Any advice and help is appreciated! Thanks in advance!
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