Checking my pulse on this deal

[Jonathan Sher]

Hello BP Fans,

I currently own 6 single family homes of which 3 are rented, 1 goes on the market next week for rent, 1 under construction and 1 waiting to close on.

I'm putting an offer on a house which if i get, would be the most expensive rental I would own. I want to check where my head is at after owning 6 properties and putting over 100 offers in over the past year.

1,100 sq ft 3/1 house in a nice neighborhood built in 1960

Purchase price: $42,000
Borrow $35,000 @ 5.5% 15y
$3,000 for clean up and repairs
$10,000 cash investment

Proforma
Rent $900 a month = $10,800 a year
Mortgage $286 a month = $3,432 a year
Taxes $100 a month =$1,200 a year
Insurance $100 a month = $1,200 a year

I know there is unexpected vacancy costs, maintenance costs, lawyer costs etc... I'm just looking for a high level perspective.

Thanks!