1st Property - Analysis Paralysis?
Hello BP. This is my first post but I have been following the forum for a few weeks now. I am a new investor in the Philadelphia area interested in Buy/Hold with multi family dwellings.
The deal I'm considering is on a duplex in a strong rental neighborhood. Each unit is 2 bedroom/1 bathroom that have been renting for the past several years at $900/month. The work necessary on the home after purchase is a roof which will run me $4,300 as well as some minor cosmetic touch ups.
I could close on the deal at $205,000. The comps in the area are roughly the same. With a conventional mortgage I'm looking at about $1,360/month including insurance, PMI, and taxes. I'll have to put about $18,000 down including closing costs.
My worry is not having any equity built into the deal. It's difficult to find rehab properties in the area. I'm not sure that positive cash flow at $400 a month is a safe enough bet.
I would love input on this deal as the seller is ready to close early this week and have other offers slightly lower then what I am offering.
Thanks BP!!