How Should I Structure My First Rental
Hello Everyone.
So I am new to this investing idea. However I have spent as much time and effort that I have learning, reading, and ingesting everything that I can. I am a small business owner in the Nashville area. I am an owner operator and a father of a 6 month old and almost 2 year old. As you can imagine I am a busy person.
I currently own a 3 bed 2 bath home in Mt. Juliet TN about 20-25 minutes outside Nashville. I am about 5 minutes from great shopping and all that the area has to offer. As this area is growing super fast, I am considering using this home as my first rental. So I will give some details and some analysis I have to this point. Any input would be great!
amount owed on loan-$185k-(FHA)I have done some light rehab to update andI am considering putting 20k in and refinancing to conventional 30 year to lower the payments. House is worth 245k now.
The home sits on .83 acres (Big yard!)(thoughts?) the schools less than 1 mile down the road are some of the best in nashville in fact they got a 10 out of 10 rate last year.
Numbers
home value
20k down
loan amount 165k conventional 4.5% Rent-$1600
PMI-$45 Cash Flow-$237
Insurance-$50 ($397 self manage)
vacancy-5%
repairs-5%
cap ex-7%
management-10%(being my first i would self manage)
If this is a good deal. Where would I go? How would I be able to finance my next home to take my family to?
Thanks guys