Analyzing Rental Property Deals SFH
Hello everyone, less than a month new to BP and to RE investment in general. I know there are many variables that might prevent a true constructive feedback but I was hoping to get some insights and guidance from this platform. I'm analyzing a first potential SFH deal on a conventional loan with 20-25% down. After expenses and mortgage, I end up with a net cash flow of anywhere b/w $150-$250 which I find rather small, and I wonder if this could even get eaten up by tax filing time. If I apply the 1% rule, the current rental value is below by about $500, however, cap rate is calculated at 6% and CoC at 3%. (neither cap rate or CoC were calculated using NOI after mortgage costs). I'm hoping I didnt make a mistake with these numbers but assuming proper assessment of the local market, jobs/population growth, property condition, rental demand, future appreciation etc., is this something that sounds within acceptable ranges or am I missing a piece of the puzzle here?
Thanks in advance!