Updated about 11 years ago on . Most recent reply
Help me analyze my potential first deal
I have been wishing and dreaming about getting into real estate for quite some time. So I began reading and learning as much on here as possible. One day I felt ready, and this culminated with an offer on a foreclosed house that I wanted to flip. The spouse and I lost out on the house by two thousand dollars. We have since decided that we would like to go in more of a buy and hold direction.
So the deal we're currently looking at is a 4 bed 4 bath condo in a large complex that is used for student housing very close to a large university. The unit can be had for $110,000. The numbers I have ran come out like this. All of these have been discussed with my bank, county, and insurance agency to be pretty reliable.
We would put 20% down, Leaving a loan of $88,000. This leaves us a mortgage payment of 452 per month. Monthly taxes of 125, insurance of 75 and a home owners association fee of 170. Coming to a total of $822 per month.
These units rent at a per bedroom price, with prices ranging from 350-500 per room per month. I have ran my numbers with an expected rent of 400 per room or 1,600 per unit. This leaves a gross profit of 778 per month before repairs and vacancy costs.
What do you guys think? Thanks a lot for the help!