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. 

[Steven Foster Wilson]

@Vincent Phan I am currently only investing where I am from and currently live, Columbus OH. The home prices here are pretty good, they seem to be rising with the rest of the housing market, but from time to time you can find a gem for a nice price. 

For example last month I closed on a 3 unit with an extra vacant lot for $160,000. Far exceeds the 1% rule and is in an appreciating neighborhood.