Opinions? First deal
Hello BP!
I need some advice. I have an offer in on my first deal and the inspection periods ends on 2/4/21
Details of the property: Its a duplex for 135,000 I plan on house hacking it for one year and then moving out. Its a conventional loan with 15% down, 3.5% on interest, and low closing costs. Total money down 35,000 including some repairs.
Expenses:
Loan - 950
Insurance - 175
Vacancies - 90 ( 5% )
Capital Expenditures - 90 (5%)
Repairs - 90 (5%)
Total - 1,400
Income -
Bottom Unit : $1000
Top: 700-800
Possibility to make it into a triplex and collect another 500-800 down the road.
Cash Flow - 300-400
ROI - 10% - 13.7%
Cap Rate - 2.6% - 3.7%
This is my first deal and I would love to hear peoples input. I am very nervous about the deal. The address is 1521 Garfield Court, Saint Cloud, MN if you want to see it. I don't think the house will need more than 10,000 just windows sooner than later, paint, flooring. I would love to hear peoples advice and what they look for when running numbers/buying a property. there are currently already tenants in the bigger unit paying 1000 on a month to month lease I might try and increase that. I know there was an issue with the roof but the insurance company took care of it.