@Antonio Garcia This doesn't look like a great first deal. The first thing that jumps out at me is the $50K rehab. That is a LOT of rehab and will likely take a LONG time. Keep in mind that there is an opportunity cost of $1K/mo in lost rent for every month it is in rehab and not performing. This could easily stretch to 6 months for a newbie. That is a $6K opportunity cost over a rent-ready house. Add in the financing costs for the rehab (and possible seasoning period). I assume you haven't got the cash on hand.
You'd be better off paying $81K (I'm sure you can find something at a 10% discount) for a $90K rent-ready house, which isn't to say that would be a good deal either.
@Antonio Garcia , owner pays all utilities? Investors hate that!
Tax; Vacancy; Maintenance/Cap Ex all seem not conservative enough.
Unless you already know your Lender and their rates/terms, you might find they won't lend 85% of what you need it to appraise for! Just sayin'. Welcome to BP....
@Larry T. Thank you for your response and yes im a new to the real estate game. But after what you stated i started to look at the neighboorhood and it wouldnt work as a flip or a rental property. It wasnt going to be a deal i drove by there today and immediately saw foundation issues. Im going to focus now primarly on my capital gain first flipping houses and then transition into rental property investments. Ill be posting another calculation of a flip im going to go look at tommorow hopefully you can see it. I enjoy BP i dont have anyone in my life that does real estate investing its humbling to know that i can calculate a deal, post it,and get recommendations and different alternatives.
@Brent Coombs Thank you ill keep that in mind for future deals on rental properties. Appriciate your welcome thank you.