What's wrong with my math? IRR at 25%
I've been researching for months now on rental properties and intend to do so for a few more months (wanna finish my CPA before I focus on rentals). But I've been shopping around to see what's out there.
I found a 75k house that is listed as move in ready(lets assume it actually is). The area where it's located has average rent of $1,000. I plugged in the numbers on a generic calculator online and my apparent monthly return is almost $500. From what I've read on there, $200-300 is considered really good so I'm kinda confused how I can come up with $500. I've posted the link below of my math, please feel free to help.
http://www.calculator.net/rental-property-calculator.html?cprice=75000&cuseloan=yes&cdownpayment=14&cinterest=4.5&cloanterm=30&cothercost=3000&cneedrepair=no&crepaircost=10000&cafterrepairvalue=150000&ctax=1500&ctaxincrease=3&cinsurance=800&cinsuranceincrease=3&choa=0&choaincrease=3&cmaintenance=1000&cmaintenanceincrease=3&cother=200&cotherincrease=3&crent=900&crentincrease=3&cotherincome=0&cotherincomeincrease=3&cvacancy=5&cmanagement=10&cknowsellprice=no&cappreciation=3&csellprice=200000&cholding=20&csellcost=8&printit=0&ctype=&x=30&y=20