2 more under contract... looking for feedback

[Michael Wentzel]

Hello everyone,

I managed to get two more properties under contract recently. These two will be just my 3rd and 4th properties. So I'm looking for feedback as I continue to learn.

#3- 2 bed, 1 bath single family

Built 1900

Purchase price- 22500

Down payment- 5625 (25% down on 15 year portfolio loan, 5.25%)

Rent- 500

Mortgage- 135

Taxes- 20

Insurance- 30

Property management (10%)- 50

Maintenance (10%)- 50

Vacancy (10%)- 50

Cash flow- 165

Rent over Purchase price- 2.2%

Return on cash- 30%

#4- House (4 bed, 1 bath) & Cottage (1 bed, 1 bath)

Built 1940

Purchase price- 35900

Down payment- 8975 (25% down on 15 year portfolio loan, 5.25%)

Rent- 1100

Mortgage- 216

Taxes- 28

Insurance- 40

Property management (10%)- 110

Maintenance (10%)- 110

Vacancy (10%)- 110

Utilities- 180

Cash flow- 306

Rent over Purchase price- 3%

Return on cash- 37%

The community where I'm purchasing properties is about 40 minutes away from where I live and work. This is the first time I've made offers and gotten properties under contract without looking at them. I'm going down tomorrow to go through both properties with my inspector. The interior of #3 has been updated and I expect it to be rent-ready. I expect #4 will need some minor work to get it rent-ready for renters.

I'm a little concerned about closing on the properties in January and trying to get new tenants during winter. But I think my property manager can handle that.

Any thoughts on these two properties?

Mike