Looking to do my first out of state deal and wanted to get some feedback. I think my analysis is decent but is there something I'm missing?
Getting the properties from another friend of mine in WV. He owns them outright and will owner finance 95k with zero down and 3%. (30 year fixed) Have done my research on the comps and this seems to still be below market. Probably getting 5-10k of equity out of the gate. Closing costs will only be about 1k with inspection and the lawyer fee. WV wasn't my ideal market since it's trending slightly below the national average in employment, median income etc but I think this is still a good deal to jump on.
Two houses on one lot. (have the survey to split addresses/property as well)
Both have new tenants in them as of Dec 2017. $1300 per month total rent. (550 and 750)
There is a local property manager there that I had a great conversation with about tenants/screening etc. (She also manages my friends other 6 units in the area)
Taxes: 2200 for the year (183.33 a month)
Insurance: 100 a month
Loan service/Misc: $25
I should still be clearing $200 a month positive cash flow......unless I'm completely missing something.
Thanks for any feedback in advance!!
If those owner finance terms are true, I would go with that all day long. Unless the neighborhood is awful or something.
Thanks Caleb. Terms are legit. Neighborhood isn’t the nicest place in the planet but definitely not a war zone. Fingers crossed!