First Rental Property, if it’s a good deal or not?

[William McCuin]

Hello BP People, I’m William McCuin and I’m a first time real estate investor looking for my first rental property in central AR, while I reside in SoCal. I have found a couple of single family properties all around $50K each that would cash flow around $100-$140 each after expenses including: Vacancy, Capx, management. (10% for each). The realator said there was no deferred maintenance and there are currently tenants in the properties.

I’m wondering two things!

1. For a deal like this, with long term tenants and no maintenance issues, would it still make sense to put 10% capX away or would you want to drop that percentage some since the house is in good shape?

2. Do you think $100-130 cash flow on a $53K single family is worth it? I’m thinking since it’s my first deal the fact that it will cash flow more than $100+ will be great along with all the knowledge I will gain from my first deal!

Please let me know what you all think!

Thank you so much in advance.

William McCuin