First time investor with deal in Dallas

[David Harrel]

Hi every one i have been on the site for a while now but just as a reader. I have found a property in my area that my wife and i want to pick up.

Here are the stats

Owner financed note of $170000 at 6% for 30yr

Closing cost of 5500 that i am paying out of pocket

The home needs some work of around to a tune of 12k-15k

The house has a ARV of around 250k-265k

Taxes are 4550 a year

Insurance is 1350 a year

I believe i can get rent rates at 2000 but for worst case i have been using 1800 for all my calculations

I ran the investment calculator and before i refinance the home it say i cashflow 290 a month and after a refinance i believe my cashflow to be around 350. This is with no vacancy rate and nothing withheld for repairs.

My question is this is 350 a month a good return for a house like this in dallas?

[Nick B.]

You can get $350/mo on a much cheaper house if you use the same "no vacancy, no repairs" assumption. It is really a function of rent vs PITI if nothing else is factored in.