Question about income from rental properties
I have a quick question regarding income from rental properties. I am a completely newb as of now, and am trying to learn what I need to learn before I get into anything. I am in Northern VA, and I am looking at possible buying a rental property, or two if possible, in Raleigh, NC. I have family down there, and it's not that far of a drive if I have to go down.
My question is, how much money, in amount or percentage, do you aim to make each month off the property?
I've been looking through a few properties just to get a feel for them. For example, there is a 3 bedroom, 3 bathroom, 1600sq/ft house for sale in Northern Raleigh for $140,000. Lets say I can snag it for $130,000. Mortgage ends up being around $850 a month, including property tax, depending on what I put down. House is in good condition, little or no repairs need to be made. Based on houses in the same neighborhood, with almost exact specs, they rent for around $1,250 a month. So if I rent it out for $1,250, and pay $850 in mortgage, that is $400 in income a month. Is that considered good? Bad? Average? I know there are other expenses, I read briefly about the 50% rule.
Am I close here, or am I way off? What is an average situation?