Possible First Deal
For those who don't know, I joined BP yesterday, and have only even considered REI in the last week or so.
So, I was thinking of starting with something I can play around with that wouldn't hurt too bad if I really screw something up.
Here's what I found:
2BR/1BA for $32500 ~850sqft, I'm thinking of offering $26k
I drove over there and peeked in the windows and it seems well maintained with nice windows, bath(what I could see) and carpets, also the roof and siding looks good to me.
There was an apartment down the street, that looked about the same size, with a rental sign out front that said $450/mo.
I found it on HomePath.com and they say I can get it for 5% down. Is that right?
Ok, so here are some rough numbers I've calculated. (I hope I'm doing this right)
Rent: $450
50% rule: $225
Down Payment: $1625
Closing Costs: $3000? (I'm not sure how to calculate this, but the last time I refinanced my own house it was about that much).
P&I for 30yrs at 5% would be $191
Out of pocket: $4300? (Not sure if I'm missing something obvious)
Cash Flow: $69.30 / month (low, i know)
Cash over cash: $832 / $4300 = 19%
Did I do that right?
Thanks for helping me figure this stuff out!
Sam