Katy Texas first property

[Clark Dickenscheidt]

We have been brought a possible property to buy from an agent/friend I spoke to about our interest in buying our first property.  The home is 3 bed/2 bath, fully remodeled and basically move in ready.  My agent/friend may also have tenants looking to move in around time we would close.  Timing seems great but nervous to make sure first purchase is a good one.  Rental calculator gives us about $240 cash flow per month based on purchase price of 180k (what agent thinks they will ask) and $1600 per month rent.  Comps sent to me by agent make me think 170-175,000 closer to right price for house but rents might be lower than he thinks at about $1450-$1550.

We are pursuing this deal but would love some thoughts and encouragement from experienced investors.

[Aaron Montague]

@Clark Dickenscheidt This place doesn't look awesome.  Here are the numbers as I see them.  Please correct anything and I'll readjust the numbers.

Mortgage Rate	5.00%
Length of Mortgage in years	30
Monthly Mortgage payment	$724.71
Taxes	$ 180.25
Sewer and Water (paid by tenant)	$ -
Trash (paid by tenant)	$ -
Heat/Utilities (paid by tenant)	$ -
HOA (paid by tenant)	$ -
Cap Ex and Ops	$ 200.00
Insurance	$ 125.00
Mgmt Fee	$ 170.00
Vacancy	$ 136.00
Total Expenses	$1,535.96
Unit 1	$ 1,700.00
Total Revenue	$ 1,700.00
Cashflow/month	$ 164.04
Cashflow/year	$ 1,968.49
Cash on Cash Return	3.90%