So after months of looking for my 1st investment home. What do you think of these numbers? I am new to this but learning !  In a descent neighborhood with great schools. 3bedroom/2bath. The house is rent ready also.

SP 109k

taxes  2.87  / 3100 a month

ins 950 

vacancy 7%

rent 1200

repairs annually 500   estimate

20% down 4.9 int 30 yr.

What do you think ?  I'm getting around 250 cashflow.

I can probably get more on rent but going worst scenario.

Hello Victor,

I think your repair estimate is a little low. I think a good repair reserve is about 10% of gross rent (so around $120 per month). A single AC replacement could account for several years of your repair reserve. Your vacancy estimate may be alright. I typically estimate 10% for that as well. So you're at $800 PITI, $120 Repairs, $84-120 Vacancy. Would you manage this property yourself? How do you plan on marketing? You're looking at close to $160 per month cash flow not including management/marketing. If you can make $100 per rental per month I think you're doing ok.

Thanks for the reply Eric. I will be managing this home myself. It's less then 5 mins away from me. Marketing is the next thing to learn as this is my  1st investment home.