Weighing in on a purchase

[Wendy Lee]

Hey everyone. I'm fairly new to the long-term rental market. I'm moving to a new city (Richland, WA) and we're buying a $335k house there with 5% down, renting out the basement for $800/month. I'm considering buying a fairly turnkey Rental Property for $240k with 20% down and renting that one for $1450. It's a low vacancy area so I'm not worried about getting renters. 

My question is, is the rental property worth investing in given those numbers? Or would my money be better spent waiting for a lower priced home or even investing in another area with a better price:rent ratio? 

Any thoughts would be welcome! Excited to join this community and great group of minds. 

[James Wise]

Originally posted by @Wendy Lee:

Hey everyone. I'm fairly new to the long-term rental market. I'm moving to a new city (Richland, WA) and we're buying a $335k house there with 5% down, renting out the basement for $800/month. I'm considering buying a fairly turnkey Rental Property for $240k with 20% down and renting that one for $1450. It's a low vacancy area so I'm not worried about getting renters. 

My question is, is the rental property worth investing in given those numbers? Or would my money be better spent waiting for a lower priced home or even investing in another area with a better price:rent ratio? 

Any thoughts would be welcome! Excited to join this community and great group of minds. 

 $240k is a ton of money to get $1,450/mo in rent. You can easily purchase $1,450/mo in rent in the Midwest for $100,000 or so.