Thoughts on these numbers?

[Nancy Ayala]

[Nathan Gesner]

I don't think you're fully accounting for expenses. I don't you setting anything aside for maintenance or capital expenditures. $42 a month on maintenance is only $500 a year. Most investors would tell you that a reasonable amount for maintenance is 10% or about $2,000 a year. The same amount should be set aside for capital expenditures (roof, paint, carpet) and you have nothing for that. 

I'm in the process of buying a single-family that will rent for $1,800. I'm setting aside 40% of the rent income for maintenance, capital expenditures, vacancy, and other expenses. My cash flow will be about $300. HOWEVER, I have a $20,000 reserve, strong W-2 income, no debt, the house is newly renovated and won't require much maintenance for the next 5-10 years, and other things in place to protect me. 

A very common scenario for a new(er) investor: Tenant fails to pay rent, leaves the home with $2,000 in cleaning and repairs, and it takes you a month to turn the property around and get it filled. That's $1,800 in unpaid rent, $2,000 in cleaning and repairs, another $1,800 during vacancy, plus $200 or more for utilities while it's vacant. Your total loss is $4,800 but you've only set aside $1,500 for maintenance and vacancy.

I don't know your situation but for an average investor, I would say this is a weak deal.