Updated almost 5 years ago on . Most recent reply
Please help in getting my first deal right
I am trying to invest in the Houston area as my first rental property investment. It's a 4 bed 2 bath 1900 sqft single-family home in a really good neighbourhood. Here is the number I crunched. My goal is to keep the property for a long time and get some cash flow out of it. Am I assessing this property correctly? Am I missing something? I would really appreciate feedback from the experts.
| Variables | Rule of Thumb | Amount in Dollars |
| Price | 316000.0 | |
| Rent | 2300.0 | |
| Down Payment 20% (investment) | 63200.0 | |
| Monthly Mortgage | 1018.0 | |
| Property tax rate | 2.2 | 579.3 |
| Home Insurance | 100.0 | |
| Maintenance cost | 1 | 263.3 |
| Rental Agent (1-month payment) | 191.7 | |
| Total Expense | 2152.3 | |
| Cash flow (Rent - Expense) | 147.7 | |
| Annual Return on Investment | 2.8 |