First rental apartment plan question
Hi BP,
I am planning to purchase my first property to rent. I want to start with a simple deal first so I decided to purchase an apartment which could be easy to manage. Let me start with some facts before having questions for you guys.
I am thinking to have a mortgage for my first 1-bedroom apartment properly about $180k in Center City Philadelphia. The rental around that area is from $1500 to $2000. Below is my basic math for my investment:
| Annual Interest | N (years) | PV | PMT/month | Monthly Rental | CF |
| 4% | 30 | $ 180,000.00 | $ (859.35) | $ 1,500.00 | $ 640.65 |
The 180k price tag is not negotiated yet. So please advise on the other expenses on this rental, and how to evaluate this apartment value.
I started work right after school on Jan 2015, and have no property on my hand. I have about 30k in cash. I am also married, and my wife is still in school. How should I have a mortgage on my first deal? What type of finance do I need?
Please feel free to share all of your thoughts.
Huy