Thoughts on a potential 1st deal
Hi there,
I am looking at my potential first deal outside of Bend, OR. Below are the details:
- Single family home, 3 bedroom 2 bath
- 1464 square feet
- $310,000 asking price
- built in 2003
- 20% down with an est. mortgage of $1,347
The home is in great conditions and won't need any major repairs. My estimated monthly expenses (mortgage, taxes, insurance, PM fees, potential maintenance costs) comes to $2,040. This also doesn't take into account how long it will take to find a long term renter, I have been told by numerous PM that the demand is there and rental vacancy is less than 1%.
I am looking to use this home for long-term rental and have found that the average monthly rate is between $1,500-$1,800 / month. In my calculations below I used $1,800/ month for rent.
Crunching all these numbers it looks like I won't be breaking even at the end of the year and when I threw these numbers in BP's calculator, I wouldn't start making a profit until year 5.
Is this concerning? a bad deal? Am I missing anything here?
Based on the market, it seems impossible to get close to the 1% or 2% rule.
I have been told that the market looks like it is going to appreciate a lot since a lot of people are getting pushed out of Bend because of the high cost of homes and rentals.
Would love any advice! Thank you in advance!