I’m a newbie investor here - 

Recently found 2 townhomes in Fulshear, TX - next to katy - selling $426000 total. Both townhomes are still under contructions ready early next year - it’s a 3 bedrooms - do any investors here think that it’s a good rental properties? A good investment?

this is the numbers:

$426000- price total

20% down- $85200

My mortgage rate - 5% - $357840

$996 - principal & interest

3.45% property tax rate - $1207/ mo

$113 + $95 each house's HOA + access to community fitness center

Total : $2617/mo out of pocket 

Expected rents $2000/mo each house

8% vacancy rate - $3667/ mo income

2 years warranty for plumbing/ ac/ heater 

Cash on cash return - 14.7%  before the repairs cost portion

Thanks in advance for any input !

You may want to re-check your math again. 

Your principal+interest payment seems WAY too low.

$357,840 - Principal

5.0% - Interest Rate

30 Yr Note - $1,921 per month

20 Yr Note - $2,362 per month

Thanks for the reply Jon - I have re-check the math:

$426000 total

- $85200 downpayment 

= $340800- mortgage

4% interest rate -

$1627/ mo - principal &interest

3.45% property tax rate- $1225/mo
$203 /each unit - maintence + hoa + access to community fitness center 
$ 3258/ mo  total pay out of pocket

$4000/ mo expected rent 

$4000- $3258 =
$742 cash flow 
Coc roi: 10.45% ( $742x12 / 85200)

( I did not count the vacancy rate ) ( expected 100% occupancy) 

Do anyone think it is a good rental property in Houston at all? 

@Ho Chi Chris Cheung Fulshear is wayyyy out there for the Houston market. Developers are heading down I-10 with new developments so it is coming but it is still very much a rural market. The job market for your target tenant base will primarily be Katy, Richmond/Rosenberg, and to some extent Sugarland not so much Houston.

@Ho Chi Chris Cheung I don’t see anyone paying $4k for a 3/2 townhouse that far out. 3/2 homes go for about $2500-$2600

I live in katy tx and fulshear is booming but agree w adam. Folks would prob go and rent a SFH w that rent.