Is this a good deal for me?
hello! My name is Isaiah, I am new to real estate with no experience. Since This February I've been researching and learning about real estate. I want to buy and Hold by obtaining a FHA loan to start off for me and my small family. I am 22 years old with now much credit history to show for.
I am Extremely motivated and want to the risk and start making moves, should I start working on my credit first before I ask for a FHA loan from chase bank? I found what I believe may be a good deal.
Detail on deal:
Found a duplex in Palm Desert, Ca:
$425,000, 2 units
2 bed/1 bath per unit, 2,544 sqft per unit.
8,712 sqft total.
It is also Near the best charter school in the area. I know my wife would be happy about that for our 6 year old daughter since that is where she is going to school.
estimated Mortgage is:
$1,885/month.
it is in a very prime area in Palm desert, walking distance from A popular street full of very high end shops and dinning, it is sometimes called the Rodaeo dr. Of Palm Springs.
Considering what I have read that prime locations can obviously go a little higher on rent.
The website suggests the rent could be:
$2,676/month. But I'm sure when i do more research on the surrounding renters it's gonna be less than that.
would this be a good investment number wise? Also based on my no credit history, would it be a bad idea for requesting a FHA loan? I'm afraid that my interest a month my be too high and I'll end up with a bad deal with no profit in return?
I guess it depends on what way I could look at it, if I could get the rent high enough from the potential tenant, I could be able to use what I make from them to pay the mortgage and pocket a few 100 bucks a month. Eventually I could probably re-finance.
I'd rather ask her than go to the bank and get dis approved and then get a mark on my credit.
I am still learning so please be kind to that,
Thank you in advance to anyone who read and comments. :)