1st Deal - Need Help

[Brad Ott]

This will be my 1st investment deal and i'd like some help. Here are the numbers followed by some questions. 

Personal Side:

$50K w-2 + $50K personal note I own

$40K savings

Credit Score around 750

No personal debt

Property Deal:

4Plex/8bd-4ba/3660sf/1970 year built/75009 zip in N DFW/Recent Updates Made

Asking price is $365K

3 units currently rented at $850mo/realtor thinks they can rent for $1Kmo

Fast Growing Area

Financining Option:

FHA Loan quote is $30.5K cash needed to close

interest rate is 4.75% APR is 5.8%

approx. mo payment is $2976

Questions:

Obvious one - Is this a good deal? If not, then How can it be?

What strategy should i use (buy/hold, etc.) 

Exit strategy options & timing?

Am I missing any info needed to analyize deal?

BTW - this is not only my first deal...but i'm the new guy here and it's also my BP first post so your feedback is much appreciated.

With Gratitude,

Brad

p.s. I live in Celina TX if anyone wants to connect!

[Collin Schwartz]

Brad Ott my suggestion is run the numbers in a manner that allows for a margain of error. It sounds like you may be using most of your funds to purchase this property so if any major issues come up it may squeeze you a bit.

With that being said my main criteria for a property is that I can raise the value of the property by 20% within the first couple months. Either by reducing expenses or increasing rents, that allows you a margain of error in case things go south.

Best of luck!