Looking for advice on my first deal
Hello Everyone,
I am new to BP and looking to make my 1st investment in Houston area. I been evaluating a few duplex and it seem this property numbers work for me. This property is been on the market for a while now so I'm not sure if I am doing something wrong or it's just the numbers to not appeal to other investors. I will really appreciate any feedback you can provide.
Thanks .
1) Purchase price: $149,900 (this is the asking price, I'm pretty sure I can submit a lower offer due to how long it's been on the market)
2) Renting for: $1,725/mo (I believe there's some room for increase, the owner have not increased rent in several years and CMA $1,800 to $2,100)
3) Property Taxes: $144.92/mo
4) Mortgage with 20% down @ 4% interest: $572/mo
5) Other expenses (Vacancy(5%), CapEx(8%), Management(8%), Repairs(5%), Insurance, Misc(5%)): ($86+$138+$138+$86+$85+$85) = $618
6) Total expenses with mortgage, tax, etc = $1,490.11
7) Monthly cash flow: $389.07. 50% rule: $289.89
the zip code of this property is 77082
So what am I doing wrong? do you believe I'm underestimating my numbers?
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