I bought my current home a couple years ago with the intent of buying and holding for rental income. I just signed the lease with my first tenants and I am moving. The rough numbers on the house: • I carry a mortgage of (currently) $170,000. 30 year fixed 3.75% • Monthly payments after taxes and insurance are $1018 • Rented for $1500/month. $482 cash flow. • Accounting for vacancy & repairs at 50% of cash flow. Leaves me with $241/month true cash flow. In hindsight, I could have rented this property for possibly $1600/mo, but my tenants have great credit with government jobs and a clean record (criminal and with past landlords).

Congratulations on getting your feet wet with your first deal! The numbers seem solid but we won't be able to tell you how you truly did until you can let us know whether or not the tenants paid all rent on time and couldn't have been more courteous or they started destroying the property and you had to evict them. Best of luck to you though!

Thanks for the vote of confidence. The house is 30 years old (3/2/2 2300 sq.ft.). Roof, HVAC, and plumbing replaced approximately 8 years ago. Other cosmetic updates in the past couple years I did myself. I am going to self manage for the first year at least, then re-evaluate the property management side for this house. Thanks for the feed back!

Any management fees? Looks like a fairly solid deal in my opinion.

How old is the home and who is managing it? I'm not sure exactly what repair or Cap expenses should run, but if that's accounted for then looks like a good deal to me!

@Jared May Congratulations! I'd take $241 in extra cash flow any day. Many investors shoot for making $100 a door, so you have doubled that (without factoring for property management). Stay on top your vacancies. When your tenant moves out if the property sits vacant for even one full month you have used up over half of your allotted budget for vacancies/maintenance/capex. Are you ready for your next one?! Can't wait to see what else you do! Thanks for sharing.

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Updated over 9 years ago on 02/10/2016. Most recent reply

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Jared MayPoster

Fort Worth, TX

Real Estate Deal Analysis & Advice

Officially a real estate investor(buy & hold). How did I do?

Jared MayPoster

Fort Worth, TX

Posted February 10, 2016 06:16

I bought my current home a couple years ago with the intent of buying and holding for rental income. I just signed the lease with my first tenants and I am moving.

The rough numbers on the house:

I carry a mortgage of (currently) $170,000. 30 year fixed 3.75%
Monthly payments after taxes and insurance are $1018
Rented for $1500/month. $482 cash flow.
Accounting for vacancy & repairs at 50% of cash flow. Leaves me with $241/month true cash flow.

In hindsight, I could have rented this property for possibly $1600/mo, but my tenants have great credit with government jobs and a clean record (criminal and with past landlords).

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Officially a real estate investor(buy & hold). How did I do?

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