Newbie's first offer in Santa Clarita (Los Angeles), CA

[Brett D.]

$489,000 purchase price

$10,000 face lift

$1698 mortgage (25% down and a 3.75% rate at 30 years)

$307 taxes

$175 insurance

$175 HOA

$118 vacancy

$29 maintenance

$59 CapEx

$2561 total expenses

$2950 rent

Does this seem out of line, or reasonable?

Thanks,

Brett

[Eman Yazdchi]

Hi Brett, I think you need to re-calculate prop tax. I believe LA County is 1.22%, which puts it at about $500 per month. Also think $350 a year in maintenance is low, turnover of carpet/cleaning will be significantly more. An average home warranty program is $50 a month alone, which could cover you against a significant loss. I’d reserve minimum $150 a month for maintenance.