Getting serious with my first potential rental
Hello guys,
Just started learning all that I can this year. I am also a firm believer that taking action and getting involved with a deal is the best teacher. My area of interest is rentals right now. I am considering a two family (duplex) that's close to me in a good town/area. It says that both units are already leased which could be good or bad in my opinion. I have to guess what the leases are for now but I will contact the real estate agent to find out. I would be very grateful if you could take a look at a few of the numbers below and let me know if they make sense to you. Thank you so much!
Selling Price: $112000
Down Payment: $22.4k
Mortgage: $415
Income: $1500 ($750 per unit estimated)
Expenses: $750
Monthly Cashflow (after expenses and mortgage): $335
Yearly Cashflow: $4020
Cash on Cash: 18%
1% Rule: 1.3%
Let me know if that's not enough information.
Thanks again