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.
Your cash flow is actually $146.52, which is not very desirable.
If you could pocket $500 then proceed, but you should also increase your vacancy (8-10% rather than 5%)
I use this calculator all the time, from the link you posted your monthly cash flow says $146.52. Im not entirely sure where you see $500 if you could can you explain how or where you got $500 ?
Your net return would be about$500/mo. If you paid cash, no mtg payments...
I guess that $146.52 must've scared him off. It's only 14 hours since he posted and the account is closed already. ;)
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