Having only accounted for mortgage, insurance and HOA you will never have positive cash flow from this property as a long term hold. You have neglected to account for all other operating costs associated with a rental property. In addition your 100K in equity is costing you at least $416/month in lost income based on a oportunity value or 10% and a mortggae interest rate at 5%.
There is no way you should be holding this property as a income investment. The numbers simply will never work out positive.
Now that you have left your previous job, how do you plan to finance the properties you wish to acquire?
$100K Is too much to have wrapped up in a property with no cash flow. Thomas S. is correct that you haven't accounted for maintenance, tax increases, and other variables. And even if you do get $300/month that's not a very good return on your money. I know some investors have a business plan to hold and make money on tax savings, appreciation, and debt reduction, but you said your goal is to have multiple properties, so unless you have a lot of cash I don't see how you could accomplish that without better leverage.
I left my day job, to pursue Real estate sales, and mortgage lending full time. Hopefully once I master that I should be able to prove to the banks I’m able afford financing on there properties...
I am definitely leaning towards selling, I was thinking I can purchase something with in norther florid our out of state with the profit I make. Is that a good idea?
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing