Need your help BP folks! I’ve been listening to the BP podcasts for a solid 6 months and it has come time where I have a possible investment property that I can jump on but need your help in making sure I’m on the right path here.

I have a single family home that I can put under contract today for $190K with 5% down on a conventional financing loan with PMI as well. Home appraised recently for $230K and I could rent it out for around $1,600 a month. Should I buy the home and rent it out while keeping the original loan or cash out refinance? Very little if any repairs are needed and it's in a pretty good neighborhood that will be developing well. What would you do? Trying to make a living with real estate so your thoughts would help a lot! Thank you!

@Brandon Turner Would either of you guys help a guy out please? If you respond I’ll sign up for a Pro membership. @David Greene

Hey Joshua, did you run the deal out on the BP calcs to see if it would make you any money?

@Joshua Stone you need to run a thorough analysis. Does the home have positive cash flow? What is the monthly debt paydown, taxes, any chance of appreciation? What are you using for vacancy rate, CapEx, repairs, etc...

Answering all of these details will lead to the answer to your question.  Without them no one can really answer whether this is a good deal or not.  At first glance... $1600 is a low rental amount for a $190,000 purchase.  We are getting $1600 on a $120,000 purchase around here but... different market and I'm sure different tax rates as I am in NY.