What are all the costs in buying a house?
I just graduated college, so my knowledge on buying and selling real estate is very little. I've made it through the first 17 BiggerPockets podcasts now and read a bunch of articles in the last 6 months, but can someone tell me what all the costs are to buying a house?
Just for example, if I go online and find a house that is selling for about $320,000 it may say that the estimated mortgage is $1,200/mo for a 30 year fixed loan with a 20% down payment and 3.83% interest rate. Right there that sounds great, because it's a 4-bedroom house and the average rent for a 4-bedroom house in that area is about $2,400/mo. So it appears to me that there would be a $1,200 cash flow per month, but I know that can't be... What are other expenses per month that would lower my cash flow? Thanks!
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That $1200 payment probably doesn't include property taxes or insurance.There is also property management fees,and monthly deposits into savings accounts for minor repairs and eventually major replacement costs like new roof,driveways,hot water heaters,appliances,flooring,repainting,etc.Look at the rental calculators on this website to give you a good idea about all that is involved about ownership of rental properties.