I am brand new to the world of rentals, i have been reading as much as i can get my hands on and know that i want to rent out properties. My wife and i have the opportunity to purchase the home we are renting. we are looking at a price of 203k and since we can avoid a lot of the realtor fees that should save my wife and i a lot. so here is where i really need help, i want to be able to rent out this house in a year or two and want to make sure that we wont be "upside down" in the future. Will i be able to rent out the home for enough to cover the mortgage and property management fees? I want to be very careful going into this and any help or advice would be appreciated. im happy to answer any questions as well.
Hey Joel! I highly suggest you do some more research on how to analyze a rental property before you go any further with this transaction. Luckily you are in the right place. I would hop on a calculator and spend a few hours trying to find figures specific to this deal. If this were me, I would analyze the numbers as if I was renting it out tomorrow rather than a year from now because the numbers "should" be much more manageable a year from now. In short, if you can make the numbers work today, they should work better next year. Good Luck!