Deal Analysis
Am I doing my math right?
I found a place for around $130k. Mortgage with 20% worst case is $700/month. Research is telling me I can get around $1200-1400/month for rent. Here are the numbers:
20% down = $26,000
Overestimated closing costs = $10,000
Minimum Rent = $1200/month
High Property Manager Cut at 10% = -$120/month
So here's the math:
(1200-120)/(26000+10000)=33%
So WORST CASE SCENARIO is about 33%. Am I missing something??
The neighborhood is decent. Schools are decent. There's a couple average schools nearby, but beyond that radius the schools are mostly 8/10 and above. Crime heat map is green.