First Deal Recap, Success or Dud??

[Ethan Kohler]

Duplex purchased in 2024 - First deal, Turn key, traditional Side by side, 1980 build in good area (same suburb where I live)

Listed on MLS for $325k, accepted $300k on land contract with 20% down at 5.5% interest with 5 year balloon and 25 year am. Seller preferred land contract.

Initial rent totaled $2,360 and I raised this year to $2,660. Still a bit below market rent but tenants have been good/stable compared to what I have heard from other stories. 

Taxes went up to $7,210 per year that I just paid. After taxes and a few other relatively small expenses, I am about $1,000 in the negative. Was it worth it....??

I'm sure the answer depends on perspective and long term goals. I preferred a better, value add deal, but those were tough to find and take on at my novice level. This seemed like a good deal in good area for first one under my belt, but it took capital and was something of a lateral play. 

Feedback?? I thought interest rate was good, considering. But taxes took everything. 

[Nicholas L.]

@Ethan Kohler

the problem for me here is the big down payment.  if you had put a much lower amount down, and were break even or slightly negative, that might be OK - you're building equity without much capital tied up.  i'm actually looking for seller finance deals where I can be 5% or less down and then break even.  i'll do those all day.

but here, it sounds like you outlaid 70Kish (across down payment, closing costs, etc.) and now you're losing money. is that right?