Is this a good deal ?
Theres a house in my neighborhood for sale at 159,500. Lets say I'll be able to get it at 150k. I plan to live in there for 6 months to a yr. According to my local Property manager, they will able to rent it out for 1250 to 1300 (Tenant pays all utilities).
Purchase price: $150,000.00
Closing cost: $ 3000.00
Down payment : 10%
Loan Interest rate: 4.8%
Gross monthly rent : $1250.00
P&I : $ 540
PMI : $ 45
Monthly insurance : $ 45
Property taxes : $105
Vacancy : $62.50
Repairs : $62.50
CapEx: $62.50
Management : $ 125
Total expense: $1047.50
Rent : $ 1250 to $ 1300
Cash flow : $ 202.50 to $ 252.50
COS : 13.56 %
Purchase car rate: 5.95 %
This will be my first deal. There are lot of people looking to rent here.
Thank you for your inputs