I have a single family home 4 bed 3 bath that I am looking to invest in in a desirable neighborhood, great school, growing community.
I have secured great financing. Home is 285k with 5k down. 4 year old home that needs nothing in terms of repairs. Comparing comps it will rent for 2300/month. All the bills, taxes, mortgage per month is 1800. I have run the 2% test.... It almost makes 1%. and meets the 50% rule of thumb.
Will anyone else help me with the numbers in first glance rental positive cash flow for this property?
First time real-estate investment here. Sweating bullets, but I am going to start somewhere. I am hoping with this property!!!
Hi Samantha, for your final check..... forget the 50%, 2%, 1% or any other "rule of thumb" - that's all they are. If you're actually running numbers, use real numbers and dollar signs. Since you haven't provided the actual numbers for us, we can't do it.... but if you include the following, you should be fine:
FINANCING: terms and rate.... (this will get you the principle and interest)
INCOME: 2300 / month... is this everything? (laundry, storage space, etc.?)
Should be easy from here..... consider using an investment property calculator - it makes this super easy and you'll be able to run the numbers in 5 minutes. Best luck!
PM me. My law partner and I invest in real estate and have a calculation spread sheet that will do the work for you. It'll probably take us 10 mins to do it.