Buyer's Remorse
AHHH!!! I just bought my first rental property, and am freaking out a little bit! We bought the property (in great condition!) for $47,999. It's an awesome property 3 bed 2 bath, 1,300 sqft, tax value is $110,000, the house next door is for sale for $135,000, and it has long term tenants who have perfect rental history. That being said...the seller was a little misleading about the rental income. He had originally told me it was bringing in $950/mo. Through talking with the tenants I found out they were paying $795/mo. The seller then told me that they had agreed to pay UP TO $950. So I go back to the tenants and they said "NO WAY! We could never pay that much!" I was so excited to buy my first deal that I went ahead and purchased the house anyways. The renters and I agreed on $825/mo. Did I make a mistake? Am I shorting myself? I'm so scared, and excited at the same time!
The numbers up there are all spread out... this is what they look like put together.
Purchase price- $47,999
Tax value- $110,000
Monthly Rental Income- $825
Taxes- $1,312
Vacancy- 8%
Management- 10% (self managing)
Repairs/Maintenance- 10%
Misc.- 10%