Updated about 10 years ago on . Most recent reply
Analyze a potential first deal
Hey BP,
I would like to receive some advice on a potential first buy and hold property. A little about the area:
Its in a class A neighborhood. Great location, great town, near a major city.
It is a condo. 1 bed 1 bath, 900 sq ft. Listing Price 73K ( I think I can get closer to 65K )
HOA: 265 Prop taxes (annual) : 1387.13 Insurance (estimated) : 55/month
Estimated Rent : 950
Tenet pays for utilities.
I accounted for 2 months vacancy as an overestimate in my calculation.
11,400 (rent) - 3180 (HOA) - 1900 (est. 2 mo vacancy) - 1387.13 (annual taxes) - 660 (Insurance) - 404 (estimated mortgage payment with 20% down) = 3868.87 Cash flow
Is this a safe first buy/hold or are the numbers a little tight? Rent/insurance/and vacancy are all estimated and possible to change.
Just wondering about everyone's first thoughts.
Thank you for your feedback and keep in mind: FIRST DEAL (#'s may be off)