First time starting out. How did I do?

[Phung N.]

I recently purchased a house in Charlotte, NC.  Total investment is roughly $41000 on a $170k house 3BA, 2.5BA.  My mortgage which includes tax, principles, interest will be $916.  Insurance is $715 a year.  I am renting it out for $1300 on a 2 year lease.  I am including w/d and low grade security system ($30 per month) for a traditional house.  I wish I didn't offer w/d and security but it was built in with the rental price.  I also wish I did not invest that much money initially.  I hope to obtain more rental properties.  At the rate of initial investment, I would have to put in a lot of money to start out.  Any advice on how I could do better?  I am hoping to obtain my second property next year.  

[David Kyo]

Hi Phung, I'm a newbie so take my analysis with a grain of salt.  I also don't know the Charlotte market and have no idea what appreciation in your neighborhood looks like.  Other more local and experienced folks can chime in and fix my analysis.

Based on the math below you're not in the red, but once you add in other expenses I don't know if it's a slam dunk. There's also stuff like capex, maintenance, and property mgmt you've left off the expenses side. They will mess with your CoC a lot. On the other hand...you did it and got a place =)

Cash spent: 41000
Income: 15600
Ins: 715
Tax/Debt: 10992
Maintenance: 5%?
Capex: 10%?
Prop Mgmt: ?
Cash Flow: 3893 - maintenence - capex - pm
CoC: 3893/41000 = 9.5% or less