First time OO Rental Property! Please halp!
Hello BP Community,
Currently I am looking at property on Homepath via the First Look program that is listed for ~260k - I'm hoping that my offer for roughly ~210k will be good enough to be accepted. I'm going for the buy and hold strategy. I read and reread a lot of the analysis weblogs/forum posts and ran the calculators, but being as this is my first purchase I am not wholly confident if I'm running the numbers correctly. Please help!
That being said, here are the numbers:
Purchase Price (Hopefully) - $210k-220k
Downpayment: 15%
Financing: FHA 203K (Conservatively $60k in reno) - 30 Years
Interest: 4.25%
Property Taxes: $10,290
Units: 3
Average Rent Per Unit: $1200-1300 (I'm willing to bite the bullet for the first year and dip into my pocket and rent out the third unit afterwards)
The other question I had was that if (big if) I'm running the numbers even SEMI-correctly, it looks like the numbers are well worth it. In case my offer gets rejected, whats the highest I should offer for the property so that it's still "worth" it?
Thank you!!