Is this a good deal or should I walk away?
Hi everyone, I'm still new to real estate investing so any help from those more experienced than me would be much appreciated. I'm interested in focusing on A type SFHs with higher end tenants with homes in the 150-250 range. I came across this and am considering putting an offer. Is this still a good deal despite its higher price or should I walk away? Thanks!
Location: 13 year old SFH 2000 sqft in great solid neighborhood in great location. Only 1 owner, which is the current one and owner occupied, never been rented out.
Cost: 265,000 with 20% down
Rental income: 2000-2200 per month based on market
Property tax: 250/month
Insurance: 80/month
HOA: 29/month
Assuming 2050 rental per month, 5% vacancy and 5% maintenance per month set aside for expenses, and 4.1% interest rate (got this in December 2016), I would cash flow at 466 per month with a cash on cash of 10.5%.