Need input on first rental property

[Vincent Phan]

Hi all,

I’m looking for my first rental property. I found something that I might pull a trigger on (offering). Just want to get some opinions. 

- 300k purchase price 

- 5% or 20% down depending what we can get. On a 4.25% int rate 30 year loan. 
- 2 flat. Gut rebabbed with 2 units  

- midwest 

- owner paid water, hot water and furnace. So there’s only one hot water tank and furnace for both units. 
- potential $1300-1400/unit plus maybe $150/m for both garage space. 
- $3700/ year tax 

I’m getting between 7.5-8.5% cap rate depending on the cost of gas and mortgage insurance and if we do 5% down or  20% down. Between 12%-38% as cocroi  

What do you guys think? I don’t know anyone i know that can give me an input on this besides my real estate agent so your input is greatly appreciated. 

[Vincent Phan]

Originally posted by @Steven Foster Wilson:

@Vincent Phan for my campus rental 0%. I actually rent that almost 8 months in advance of the actual start date (high demand on OSU campus). The properties down in Hungarian village, not sure since I just purchased, but the owner figured a typical 5% vacancy.

wow. maybe i should invest in columbus instead lol but the idea of investing out of state still scares me.