Looking for Someone Else's Opinion on a Rental Property
Hello everyone,
I'm looking for someone else's opinion on a rental property
Some of the numbers of the property look like this:
Bedrooms: 2
Bathrooms:1
Lot Assessment:$66,400.00
Building Assessment:$76,300.00
Total Assessment:$142,700.00
Annual Municipal Taxes: 3400
Built in 1961
It's a one story home with a crawl space as a basement. It sits on a piece of land close to 5000 square feet.
I'm going to try and get the property for 139,000.
I did some numbers and if I amortized the property over 25 years at a 3.5% (at the moment it's 2.79 for a 2 year fixed mortgage but I'm playing it safe) mortgage rate with a 30% down payment (41,000$) it would be a $480 monthly payment.
I'd put the property up for rent as is for $600 a month. I'd let the tenant pay for the electricity. Snow removal and grass cutting will be offered to them as a extra and will not be included within the rent.
Exit Strategy
Land in the area is going for around 38$ a square foot (kind of high but it's a suburban area with close access to a major city).
The way I see it I can't go wrong, I could always sell the land for basically what I would have paid for it.
This would be my first property. I'm open to opinions, thoughts and please tell me if there is anything I over looked.