Under contract, am I blowing this deal?? Help!!
Hello everyone! I am currently under contract for a home which on the surface looks like a great buy but I can't quite get a sense of my numbers... they keep coming out bad. I have tried to use the Bigger Pockets calculator but I feel like I am guessing on some key variables. I have a great lender who I have worked with before. My intent is to rent this single family home, which is in a great area that I know for a fact is on the verge of MAJOR growth/rental demand. Here are the facts:
The house: 4BD 2BA, 1666 SQ FT, Two Story, Built in 1955 but has since had many renovations done, it will require very little to prepare for tenants
Total Cash to Close: $178k
Loan: $424,100 @ 3.5%
Rental Comps: $2950-4500 a month
Vacancy for this area is <2%
Sale comps: 600-675k on most recent sales of similar homes
Property Management: 8% of rent
Property Tax: $4600 annually
My question is: Is this a good buy/ good use of 178k of my money? If rental income stream is what I am after, I get a sense that I am tying up a lot of capital that could be put to good use elsewhere? Standing by for questions on this discussion. I really appreciate all the help!